Life Insurance. Special Urgent Alert
insurance policies written in trust. Regular readers of our Blog will know that we have consistently reminded people taking out life insurance, that they should have their policy written in cheap secured loans trust in order to avoid future Inheritance Tax (IHT).
- Life Insurance. Why There's No Need to be a Desperate Housewife
- This article highlights some of the mistakes people make when buying life insurance and draws to your attention the attraction of family income benefit insurance, a form of life insurance to provide income for families.
- Keyman Insurance. insures some of your biggest businesses risks.
- Keyman insurance is a necessary cost of a small business but it is often missed. The author explains why such an omission could be disastrous to your business.
- Keyman Insurance. insures some of your biggest businesses risks.
- Keyman insurance is a necessary cost of a small business but it is often missed. The author explains why such an omission could be disastrous to your business.
- Critical Illness Insurance. Are your children insured?
- Ensure that your critical illness policy automatically covers your children. This article explains why it's so important.
The new rules introduced at the recent budget mean that even if your policy is written in trust and there is a claim on your policy, loans your estate will have to pay a tax charge of up to 6% on the value of the payout that comes above the IHT threshold of £285,00. This new rule applies from 5 th April 2006. (medical insurance)
Whilst this new tax is not to be welcomed, the new tax is only 6% which is still better than the 40% your estate would have to pay if your life insurance policy had remortgages not been written in trust. So, we believe that it is still worthwhile writing your life insurance policy in trust.
Having said that, there is medical insurance now a danger that the tax charge of up to 6% could mean that there is insufficient IHT free cash generated by your policy to achieve your financial objective. If this is the case, dont take any action just yet.
Click here for page 2 (life assurance)