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Inheritance Tax - Life Assurance

Life assurance can be purchased to cover Potentially Exempt Transfers against the event of the donor dying within seven years of the gift. A seven-year term assurance policy in trust would provide funds to pay the tax bill on death.

Whole of life policies in trust can be used to cover all or part of the tax liability on death.

Annuities can be used to provide incomes to pay for whole of life policies in Trust. The purchase price of the annuity would leave your Estate immediately. The sum assured of the whole of life policy is outside your Estate as it is in trust.