How to keep the taxman away from your life insurance payout

This article first appeared on Your Money. Figures from the 2009/2010 tax year showed, families who have lost a loved one face up to 40% inheritance tax (IHT) on life insurance payouts.  However, experts said policyholders can stop their loved ones being hit with a big IHT bill by writing their policies into a trust. Writing a life insurance policy into a trust means final payouts will not form part of an individual's estate when they die, meaning the payout is not liable to IHT. The money will also be paid out quicker because families will not have to wait for the estate to be ...