Trusts & Tax
- Will my loved ones have to pay inheritance tax on my life insurance?
If you put your life insurance policy in Trust this effectively sidesteps inheritance tax, because your life insurance cover does not form part of your Estate.
- Will my family have to pay tax on the life insurance payout?
Life insurance is tax-free - a payout is not subject to income tax. A payout can form part of your Estate and therefore could be liable for inheritance tax.