OTS recommends term life exemption from IHT

The recommendation is in the OTS's second report on the Inheritance Tax Review. Its first report, in November 2018, was prompted by a request from the chancellor in January 2018 for a thorough review of the inheritance tax (IHT) landscape. The recommendation from the OTS comes after the discovery few term life insurance policies are written in trust, despite the advantages of doing so, meaning that death benefit payments often form part of the deceased's estate and so are potentially subject to IHT. It did however acknowledge that these death benefits will quite often be covered by the s...