A recent article in The Telegraph revealed that thousands of UK families have lost an estimated £300 million in Inheritance tax (IHT) on Life Insurance pay outs after the death of loved ones. Yet, the law allows these lump sums to be exempt from IHT altogether if taxpayers follow tax advice.
Mr A messes up
Mr A was a wealthy elderly widower and he wanted to set aside some money for his grandchildren.
He saved diligently each month by paying contributions towards a whole of life insurance policy.
On his death the insurance company paid out a substantial sum to Mr A’s executor...
