IHT and protection insurance policies

Continuing on my series of articles looking at the new IHT rules and their effects on insurance based flexible trusts, this month I examine the position of protection policies in the new regime. For many individuals with an IHT problem, the easiest and most effective way to deal with it is to insure the liability, providing they are in good health. This is particularly the case for younger individuals who cannot afford to tie up their capital in a discounted gift trust structure, or for those whose main capital asset is the family home. For an annual outlay, the policy will provide a lu...