IHTM20151 - Policy settled on its own trusts: Express life interest in favour of settlor

If

• the only property settled is a policy on the life of the settlor, and
• the settlor is given an express life interest, and
• there is no clear indication that he is not to receive any income produced during his lifetime

the settlor is considered to have an interest in possession ( IHTM16061) in the policy.

Unless there is a clear indication of the type described it is considered impossible that the settlor did not intend to take any benefit from the only property in a settlement under which they have given themselves a life interest.

See examples at IHTM20154 (England, Wales and Northern Ireland) and IHTM20155 (Scotland).