INHERITANCE TAX: Whole-of-life IHT cover ruled unsuitable for 55-year-old client

The Financial Ombudsman has ordered financial advisors Towry to compensate a woman who has complained of being mis-sold a whole-of-life insurance policy in 2004 to mitigate a GBP800,000 inheritance tax liability. Her complaint was upheld on the basis that a maximum sum assured policy is generally not suitable as a long-term solution for inheritance tax liability, and she should have been advised to discuss her IHT position with her solicitors