What else could I do?
The whole point of having life insurance is to make sure those you leave behind are financially secure, and one way to avoid inheritance tax could be to set up your policy ‘in trust’. By putting a life insurance policy in trust, you’re separating it from your estate, which means it can’t be included when it comes to totting up how much you have in total.
Any assets in a trust will be overseen by ‘trustees’ who you can choose – they’ll make sure the money you’ve set aside in the trust goes to who it’s supposed to. Trustees can be family members, friends or your solicitor. It’s not complicated to do and your insurance provider should be able to help you.