Normal Expenditure out of Income - WOL JL 2nd death premiums

Charlotte_Collier

For WOL JL 2nd death policies, what happens if the client has excess net income so the premium qualifies under normal expenditure out of income rules but the partner does not? Would half the premium be a CLT (discretionary trust) for the partner?

les_cameron

Yes, unless was within the annual exemption

les_cameron

Then presumably the whole premium will be after the first one dies

Colinstewart76

I think so. It's covered in this article under point 5. https://professionalparaplanner.co.uk/technicalzone/avoiding-the-traps-on-surplus-income-gifts/