Benefits Of Inheritance Tax Planning
One sensible outcome of inheritance tax planning is the option to take out an insurance policy that will pay out on your death and also cover any inheritance tax due on your estate. It is very important to remember though that HMRC may consider your life insurance policy to form part of your estate, so you should therefore ensure that the plan is set up under a trust. However, a fringe benefit of this is that all proceeds of the policy are paid out free of tax. This will also ensure that any beneficiaries of the will are not left with a huge inheritance tax bill that they may have difficulty in paying, and may in fact be required to take out a loan to pay this inheritance tax bill while they wait for the estate to be sorted out.
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