Your headline “Wealthy urged to use life assurance to cut inheritance tax” (Report, February 10) is no doubt right about the “urging”, but misleading about the “cutting”.
Placing your trust in life assurance has the admirable attraction of providing funds to pay the IHT. Whether it is a costly way of doing so depends, of course, upon how long one lives, paying the premiums.
For those who seek to deprive the Treasury of necessary funds, simply place assets in trust without reservation and live for at least seven years. Or, for those with shorter life horizons, invest in companies that qualify for business relief and live for at least two years.
Peter Cave
London W1, UK
