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I refer to the article A detailed examination under the sub-heading Settlement and settled property. In this paragraph at page 395 it is stated that IHTA 1984 s 43 looks at the property which is subject to trusts and not at the equitable interests in that property etc.
However FA 1986 Sch 20 para 7 confirms that separate policy rights do constitute separate items of property.
Under this legislation it is confirmed that a donor/settlor may gift certain policy rights while at the same time retaining other/s via a trust carve out.
This aspect would seem to render some of the tax consequences untenable as detailed by Mr McKie.
J.N. Chadwick TEP
Simon McKie replies:
No one doubts that rights arising under an insurance policy may constitute separate items of property in some circumstances.
...Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
