POLICIES THAT PAY IHT AND REDUCE INCOME TAX

If, after careful planning, you still have an IHT liability, an insurance policy, payable into a trust for the benefit of your children is one way of ensuring the assets pass to them intact. It gives your children the wherewithall to pay the tax. As it is them who benefit, they might not mind paying the premiums.

In recent months, the cost of doing this has dropped as the 2006 budget now allows you to have life insurance with tax relief and claim up to 40% of the premiums back.

Take advice on the subject from a quitably qualified adviser.

Posted on 27 November 2006 at 12:01 by John