Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
, see all updates

Life Policies: policy on the deceased’s life not connected with any other transaction (except a trust): policy unconnected with a gift or trust:

Under the rules of the Independent Order of Foresters (and other friendly societies who offer similar policies), a member may designate a beneficiary to whom the benefits under the policy are to be payable. However, no beneficiary has a vested right to the benefits until the member dies and the member may change the beneficiary at any time. As the member is free to nominate themselves/their estate, the policy forms part of their estate for Inheritance Tax purposes on their death.