Impact Life Assurance on Inheritence Limits

[tester12]

I currently have an insurance for 4 X Annual Salary on death as part of my condition of employment.

If I were to designate my children as beneficiaries for this my wife does'nt have a problem with this.

Would they be taxed on this in the event of my death? Would this value be deducted from the Inheritence/Gift limit which they are entitled to currently about 330K.

Thank you

 

[Barney Magoo]

Yes, it would be included in any tax calculation.
Why should it be deducted? It is part of the inheritance just like any other part of your estate.

 

[mercman]

If it was a special Life Assurance Policy i.e Section 60 Policy, written in trust, then it could be used by beneficiaries to pay Inheritance Tax dues.