40% of Life Insurance Policy to HMRC?

Does your Life Policy achieve what it was set up for?

On the death of a Life Policy owner, if the policy is not assigned to a Trust, then the policy proceeds will add to the deceased’s estate.  This could potentially either create or increase any Inheritance Tax liability.

If your estate is above £325,000 you may pay 40% over the £325,000 to the tax man.  So 60% of your Life Insurance policy can go to your family and the other 40% will go to HMRC.

Be careful, please get advice.

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