Inheritance tax news: Put an insurance policy in trust

People have been issued inheritance advice to make sure that their will beneficiary receives all that they should from their estate.

Loveymoney.com, a website that specialises in financial matters, said that people should put a life insurance policy in trust to ensure that the pay out from it is directed towards the right people.

If this is not done the policy will be defined as part of their estate and will have inheritance tax levelled on it, which could be to the detriment of a will beneficiary.

The news source added that keeping a life insurance policy in a trust also means that the cash from it can be distributed to those who are set to inherit it more quickly.

Furthermore, the Economic Voice also said that people should write their life insurance policy into a trust to stop the money having to be put through the probate process and to ensure it is paid directly to their estate.