Should my Life Insurance policy be written ‘in Trust’?

'In trust' means that if you die and your next of kin receive the lump sum payout, it goes directly to that person and is not treated as part of your taxable estate. That's why we highly recommend that you do get your policy "Written in Trust".

If your policy is "Written in Trust" then your life insurance payout will definitely avoid inheritance tax. Inheritance tax can be an issue when money is passed down to children or another relative or friend. The only time that inheritance tax is completely exempt is when an inheritance is passed between spouses.