Insurers have 'no right' to inherited estate cash - advisers

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Inherited estates in with-profits funds belong to policyholders, and should not be raided by insurers and their shareholders, advisers argue.

A poll of IFAs, commissioned by Skandia, found many are deeply unhappy with life companies' attempts to plunder the inherited estates of their with-profits funds. Of 738 advisers polled at Skandia's Trailblazer roadshow, 91% say inherited estate funds belong to policyholders rather than shareholders of the with-profits provider. Skandia says feedback from the roadshow suggests advisers do not support attempts by insurers to tempt policyholders into surrendering their entitlement to future inherited estate distributions by offering them a payment today. Nick Poyntz-Wright, chief execut...

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