My wife died recently, and left her life insurance in a trust for our two children (both at primary school). Myself and my wife's sister are trustees.

Can I use the children's trust funds to but part of our home (less than 25%) so that their proportion will not count for IHT when I die, the cash would also reduce our mortgage which clearly has added benefits to al of us.

Any help appreciated.

Talisker

Hi Talisker, as far as I am concerned, you cannot do that (I still have my doubts). In my opinion, you still have to talk to a good lawyer about this to get a clear response on this.