8. MAKE SURE YOU MANAGE YOUR LIFE INSURANCE EFFECTIVELY If you have existing life cover, make sure you consider any benefits of placing it into trust. As you saw in the section about trusts, this can mean that the proceeds of the life insurance policy will then sit outside of your estate for IHT purposes. It also enables the insurance company to pay out the Key point – Ensure you proceeds more quickly to your beneficiaries, as they consider whether any life will not have to go through the same legal processes cover is written under trust as your other assets. –otherwise, it could be Another way to use life insurance is to set up a policy to included in the value of your help your family pay the IHT due on your estate. estate and accentuate a You could do this by taking out life insurance on problem it was intended to yourself for the amount of IHT that will be payable. You solve. must consider whether this should be written under trust so when you die, the money is there for your heirs to use to pay the IHT bill when it arrives. Why not transfer your IHT bill to an insurance company? You pay a monthly amount, and then the insurance company effectively pays the bill for you when you die. Life insurance can be a great way to mitigate an IHT bill. However, it’s vital that it’s taken out at an age when it’s still affordable and you’re healthy enough to get cover. Talk to us to find out how we can help.