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Hi, thanks for your enquiry. By putting any Life Policy in trust for a named family member does mean that the proceeds will NOT form part of your Estate for IHT purposes. You and your wife have a tax free joint Estate of £650,000 and when anything happens to the first spouse, no IHT is payable, but on the second spouse's death, if their Estate (and any Estate they have inherited from the first spouse), totals more than £650,000, then IHT is payable on any amount over the £650,000 threshold. So, if the value of the Life policies and your joint Estates are over £650,000, it would be wise for you to put the life policies in trust, to reduce your taxable Estates. I hope this assists and sets out the legal position to you. If I have helped, I would be grateful if you could rate my answer. Kind Regards Al
Hi, can I assist you any further? Kind Regards Al
Hi, please don't forget to rate my answer, if I have helped. Kind Regards Al
Hi, if I have answered your question, I would be grateful if you could rate my answer, so I may get credited for my time. Thanks Al