The Equalise Premiums calculator provides an indication of the ‘equalised’ premiums for a business trust that is used for ‘owner protection’ to ensure the arrangement is commercial in that each individual bears a fair cost in relation to the benefit they are likely to receive.
Business owners set up ‘owner’ protection policies so that remaining owners have sufficient funds available to purchase share of business from deceased’s family / personal representatives.
Where a business trust is used, it is often necessary for IHT reasons to ensure the arrangement is commercial in that each individual bears a fair cost in relation to the benefit they are likely to receive, so premiums may need to be “equalised”.
