I have just done this with a company called Liberty Wills ( find them on the Net). About to retire this month, I got news of them through the NHS, who I worked for. They set us up as Tenants In Common and then set up a Trust and' attached a charge' to it, which they said would negate any IHT or Nursing Home fees in the event of us both dying. Anyone else taken this route? Is it as good as it sounds? Our estate is modest and nothing close to a million.

Thanks

I have read that any life assurance policy written in trust before March 22 this year is specifically excluded from the new charges. Is this true?

Just to touch on what ChestertonGrant said about IHT (Inheiritance Tax). The government have made sweeping changes to trust recently and depending on the size of your estate and the Sum Assurured under the Life policy there may be entry charges and periodic charges in the Policy. I would recommend getting professional advice on this if you are unsure.

Having a policy in trust basically means it's ringfenced from your estate and allocated to specific individuals to benefit from. It basically means that you can avoid some of the inheritance tax liability and allocate a certain tranche of funds to certain people if you so desire. Your life assurance providers should be able to supply you with Trust forms to make this possible.

What are the advantages and how can I arrange for this to be done?