Offshore life policy
A UK client worked in the US for quite a few years from 1998 onwards and while he was there he took out a life assurance policy with a US life company.
He assigned the policy which pays out on his death to a discretionary trust for his children and grandchildren who live in the UK. The trustees are UK residents. He continues to pay the annual premiums on the policy.
We are wondering what the tax position will be in the trust when the death benefit is paid. The client is thinking of leaving the UK permanently due to the current high tax regime. Could this have any impact on the tax position in relation to the life policy?
Query 20 499– Uncle Sam.
The US life assurance policy would typically be excluded from UK IHT.
The tax implications of a UK-domiciled client leaving the...
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