A lack of awareness on the benefits of writing a life policy into trust could cost UK customers up to £100bn in inheritance tax bills. Research by Legal and General found that as many as 40% of life insurance customers had not even heard of writing a life insurance policy into trust.
This is an even more surprising statistic considering that 80% of those asked admitted to having assets they would want to pass on to loved ones. 43% of those surveyed did not even have a will in place at all. Putting a life insurance policy into trust can deliver even more peace of mind, knowing your loved ones won’t have the unnecessary financial burden of inheritance tax.
Putting a life insurance policy into trust allows the customer to gift the policy to a named beneficiary. But a lack of knowledge on the importance of taking this step has been calculated at £99.98bn worth of risk for life insurance customers.
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