A short advisory segment from Ndubuisi 'Andy' Egwim urging viewers to place life insurance policies into a trust so proceeds can be paid quickly to beneficiaries and sit outside the deceased's estate, thereby avoiding inheritance tax. He gives an illustrative payout amount of 500000, warns NHS doctors to check whether their policies are held in trust, and mentions a free guide posted in the group explaining pitfalls and next steps.
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Community. You realize I always say your life insurance should be in a trust, even a trust, the trust is a separate entity. What happens is, in that case, if the person dies or passes on the life insurance policy, the entire 500000 can be paid as quickly as possible without waiting for anyone direct to the family. So they get the entire 500000 and there's no inheritance tax on it because it's outside his estate. And what, what this means is basically, if you're a doctor, you're working in the NHS and you've got a life insurance policy, you need to be checking if it's in a trust. If it's not in a trust, I don't want to say advice has done a bad job, but that's like an obvious thing you need to find out, is it in a trust if you don't have a life insurance policy and you want to get one, that's something you should be discussing with your advisor. We've got a free guide on life insurance and then I've posted it in the group. You can download it for free, understand the pitfalls, things you can avoid. Okay. Right. The other thing to also understand is basically, if the life insurance policy is in a trust, apart from it being paid entirely, it also reduces the amount inside the estate, so helps in bringing down what is taxable on the estate.
