The LifePlan Split Trust allows a UK domiciled LifePlan policyholder, who has selected both critical illness and life cover, to have access to his or her critical illness benefit while ensuring that the life cover does not fall into their taxable estate for UK inheritance tax (IHT) purposes.
Upon diagnosis of a critical illness, and subject to the patient surviving the diagnosis by 30 days, the trustees will advance the critical illness cover to the life assured for them to use as they see fit. The life cover element of LifePlan will remain in trust and will not be taken into account for UK IHT valuation purposes on death.
If the life assured does not survive the diagnosis by 30 days, the critical illness benefit is not paid and remains in trust and outside of the UK IHT assessable estate, according to product information supplied by RL360°.
LifePlan aims to pay a cash sum on the death of the life assured, or upon diagnosis of a terminal illness. Its core benefit is primary life cover, which is available up to the value of US$7.5m (€5.3m,£4.7m).
Term benefits are available until the age of 80 and long-term care is a standard feature. It is available in sterling, dollars, euro or yen denominations.
