PSI6.2.11 - Total Benefits on Retirement at Normal Retirement Age: Life Cover after Retirement - Inheritance Tax Considerations

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

The disposal of the policy proceeds following a retired member's death must not be subject to discretionary trusts and so escape a charge to IHT. There is no problem where the policy is issued to the member personally or the employer acts as nominee or bare trustee. In each case the policy is the member's personal property and is part of his or her estate chargeable to IHT.

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