Life Insurance Policy Written In Trust

[Peter Stevens]

I am thinking of taking some life insurance to mitigate IHT liability.

1. Does this need some sort of special Trust vehicle to enclose it in or does just the fact that it pays out on death to a third party suffice.

2. If I were to take this type of policy out and die within 7 years would this then be classed as part of my estate for IHT purposes.

3. If this policy was written to last 30 years and during that time I wanted to change the beneficiary is this possible or not.

4. Can the policy have more than one beneficiary.

Apologies for multiple questions

Any pointers would be appreciated.

Thanks

[Lee Young]

You financial adviser and the life company will provide allthe necessary paperwork to put the policy in trust to ensure it does not add to the estate and therefore add to the IHT bill.