Provision for the Liability
who know that there will be an IHT liability when they die, do not wish to
consider any of the options listed previously, or they
have assets that it is not possible to give away for practical or sentimental
reasons. There are still options open
Let us consider
an individual whose main asset is the house in which they live and there will
be an IHT liability on their death of approximately £100,000. This would mean that the property would need
to be sold on death to realise the liquidity to settle the IHT liability.
would be to fund a life assurance policy, written in trust which will pay out a
cash sum on death (which will not be liable to IHT) so that the IHT liability
on the estate can easily be settled without having to realise illiquid assets.
The cost of such
a solution will of course depend the age and health of the individual. However, the premiums for the life policy
will be paid monthly or annually and the policy will pay out a fixed sum on
death. It is simply about taking a view
whether such an option is attractive and this will of course depend upon
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