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Where Taxpayers and Advisers Meet

Life insurance in trust

Dev_1
Posts:55
Joined:Sun Jun 18, 2017 4:00 pm
Life insurance in trust

Postby Dev_1 » Tue Oct 29, 2024 5:08 pm

Hello,

I was wondering if someone can assist in clarifying the below.

I currently have two life policies both of which were put into trust last year.

One was for 100k and the other was for 150k.

I would like to take out further life insurance I.e a separate policy region of 200k.

Bearing in mind the nil rate band on chargeable lifetime transfers do I need to wait another 6 years before placing the new policy which I plan on taking out into trust?.

I am mindful that collectively the policies will be in excess of 325k and if placed into trust would be within 7 years.

Any clarification is greatly appreciated.

Thanks

AGoodman
Posts:1860
Joined:Fri May 16, 2014 3:47 pm

Re: Life insurance in trust

Postby AGoodman » Wed Oct 30, 2024 6:06 pm

It all depends on the type of insurance.

If they are term assurance, with no investment element, then they are considered to have negligible value unless you are terminally ill.

If they are investment bonds - i.e. you could cash them in for value - then yes, you could be pressing up against the nil rate band.

Dev_1
Posts:55
Joined:Sun Jun 18, 2017 4:00 pm

Re: Life insurance in trust

Postby Dev_1 » Thu Oct 31, 2024 11:52 am

Hello,

Thank you for your replay.

They are basically life insurance for a fixed term with no investment element.

I am in good health thankfully, when you say they are negligible in these circumstances do you know how I can go about finding out or would I not need to?.

Thank you


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