(1) Ensure your life assurance policies are written in trust. What does this mean? It means that on death, the life assurance proceeds are paid directly to the listed beneficiaries rather than to the deceased’s executors.
Why is this important? For 2 reasons:-
(i) Because such policies are usually exempt from IHT and
(ii) The beneficiaries of the life assurance polices get the benefit more or less immediately rather than wait for Probate/Confirmation. (This can take months and sometimes years).
(2) From time to time, review the nominated beneficiaries of your Self Invested Personal Pension (SIPP). Under current law, SIPPs are effectively exempt from IHT. This is regardless of who the beneficiaries are. In addition, the nominated beneficiaries can take the benefits more or less immediately following the death of the SIPP owner. Given that pension legislation frequently changes, you should review your nominated beneficiaries on a regular basis.