Life Insurance trusts

[Luc]

I have been advised that if I set up a “life insurance trust”, then all monies within the trust will be exempted from IHT, and be protected from claims by divorce lawyers, local authority care costs and debtor claims etc

I was also advised that beneficiaries under the trust would enjoy some tax breaks

Sounds too good to be true, and in any event it is probable that the nice new Prime Minister would have banned them if they are that good. Any general advice would be appreciated

[bob.fraser@towrylaw.]

It does rather sound as if you are dealing with an advisor keen to sell you a product who is a bit too enthusiastic about the benefits of the arrangement.
With out knowing exactly which type of "life insurance trust" is in question, I would not like to guess at to which bits of what you have been told might be wrong.
General advice on IHT is also too big a subject for a quick reply.
It would help you better if you said exactly what it is that you are trying to achieve, and with how much money, and we could try to help.
Alternatively, give me a quick call and I'll point you in the right direction.

Bob Fraser
Chartered and Certified Financial Planner
07769880476.