Sometimes the methods clients use to reduce their inheritance tax (IHT) liability, such as gifts or gifts into trusts, can only go so far. 

    In this video, Technical Connection joint managing director Tony Wickenden discusses the options around putting protection in place to cover any remaining liability. 

    He explains that where clients aren't able to afford to cover the whole cost of their IHT liability, it's worth understanding whether the beneficiaries (usually grown-up children) might be able to step in. 

    Tony says this can work where the parents take out the policy in trust and pay the first premium, and then the children take over the premium payments after that. 

    This is a simple strategy that allows those who benefit from the protection policy to pay for it, where everyone agrees that this is a reasonable course of action. 

    Another way of looking at it is that it allows beneficiaries to pay for IHT upfront, in instalments. 

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