For once everyone sems to agree there is considerable uncertainty regarding the application of inheritance tax on life assurance policies set up specifically to avoid or mitigate this tax.
One thing seems certain all those policies particularly whole of life policies established in the 60's and 70's to care for the estate duty regime in force at the time, have almost certainly become redundant, and should be immediatley re-examined as to there efficacy in the present day inheritance tax environment. A lot of these polices written in "with profit" funds will have acquired substantial surrender values, and we have fund mangers willingly to buy these policies at a premium over surrender value, providing the life assured has attained the age of 70.
Not everyone has suffered however, and there are still some winners, in the shape of agricultural holdings, AIM shares, and business assets, but these options are not necessarily available to all and sundry, and in most cases carry some element of risk.
All professional advisers, Accountants and lawyers should now be re-visiting this area to establish whether past advice still holds good, and where family trusts are involved our experienced specialists are here to help.