Tax on trusts

[bess]

I'm confused about the new taxes on trusts. Can anyone clarify please? Am I still safe in writing accident and term life insurance policies to trust without fear of the new initial and 10-yearly taxation. After all, they may never pay out.
Thanks for any help.
Bess

[Lee Young]

Yes because at the time of writing them in trust they have no value and therefore are not reportable.

[bess]

Thank you so much Lee. No one else has been able to answer.
Bess

[Arnold Aaron]

Word of warning...

If the life assured is terminally ill immediately prior to the 10 yr point the policy will have a value equal to the sum assured and will attract the periodic tax charge.

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