Increase in DIS whilst in Serious Ill Health
Jona
Member
Client in Serious Ill Health. Before going on compassionate leave she arranged with her employer to increase her DIS from 3 x sal to 4 x.
When the DIS pays out, what is the IHT impact? Would the significant increase in benefit in full knowledge of death in the near term be attacked by HMRC and effectively aggregated with her estate instead of outside it as there was gratuitous intent?
Comments
IHT is about individual's estate and actions taken by them to reduce this.
So, person estate value position before and after increasing DIS is unchanged; no gift from member (assuming they are not paying the premium in anyway)
Therefore cant see that there is any IHT impact to consider.
Thanks @richardgough