05 July 2019

Life policies should not have to be written under trust to avoid IHT

2 min read

Helen Morrissey, Personal Finance Specialist
Helen Morrissey

Corporate PR Specialist – Long Term Savings


Commenting on the Office of Tax Simplification’s Inheritance Tax Review, Clare Moffat, head of business development at Royal London Intermediary, said:

“The OTS’s recommendation that life assurance policies shouldn’t need to be written into trust to avoid IHT is to be welcomed. Under the current system if a policy is not written into trust then families can be landed with an unexpected tax bill that they may struggle to pay. It also means that any pay-out is delayed until the estate has been dealt with which could take months. The OTS’s recommendation means that many families will be spared unnecessary financial hardship. In the meantime until we see a change in the law people should speak to their insurance companies to make sure these policies are written under trust to ensure their families are able to access this money quickly should the worst happen.”

For further information please contact:

Helen Morrissey, Corporate PR Specialist – Long Term Savings

About Royal London:

Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £139 billion, 8.6 million policies in force and 4,348 employees. Figures quoted are as at 30 June 2020.