Life Assurance Print
Consideration should be given to effecting an “Estate Protection Life Policy”. This is a life assurance policy, which is normally written in trust for the benefit of the transferor’s children. The premiums paid are treated as chargeable transfers to the beneficiaries, but the amounts paid will normally fall within the annual exemption of £3,000, or within the normal gifts out of income exemption. On death, the proceeds are paid directly to the named beneficiaries and do not form part of the estate of the deceased for IHT purposes and are therefore not taxable.