IHT: When gifting isn't an option

What happens when clients have a potential IHT problem, but no liquid funds to place in trust? This may be because they are wealthy, but have a large proportion of their assets wrapped up in the family home or a property portfolio. Or they may have investments which can be readily reinvested or transferred to a trust, but that disposal would generate a large capital gains tax (CGT) bill that would be unacceptable. Taking out a life assurance policy with a sum assured matching the potential IHT bill will ensure the IHT ‘problem’ is dealt with and the assets in the estate can pass intac...