Did you know we have one of the highest death taxes in the world here in Ireland.
It’s more commonly known as inheritance tax.
It takes one-third of what you intended to leave behind for your kids and gives it to The Taxman instead…unless you put a plan in place to pay that inheritance tax.
When you die and leave something nice behind, the person receiving the gift may have to pay tax on it.
Why – because the government are bastards and want to tax you out the wazoo when you’re alive and when you’re 6 feet under/buried at sea/wafting around your favourite park.
If you’re married or a civil partner, there is no inheritance tax regardless of the size of the inheritance. This is the real reason people get married folks . Love, schmove.
But your children could be hit with a massive tax bill.
The first €325,000 your kids receive in their lifetime is tax-free.
Anything above €325,000 is taxed at a whopping 33%.
Let’s say you have one child who receives a house worth €600,000 and shares valued at €86,000.
This results in an inheritance tax bill of €115,830
What if little Johnny doesn’t have that sort of cash in so has to sell the family home to pay the tax bill..
A home that could be in your family for generations.
I’m sure you’d want to avoid this scenario and you can with inheritance tax life assurance.
Inheritance tax life assurance is a special type of whole of life insurance where the proceeds of any payout are tax-free if used to pay an inheritance tax bill.
It’s also known as Section 72 Life Insurance.
In the example above you could take out a Section 72 life insurance policy for €152,000. On your death your child would get your home and shares while the Revenue would get the proceeds of your life insurance to pay the inheritance tax bill.
Here’s a handy inheritance tax liability calculator.
However if your personal situation is complex, you should take independent tax advice before proceeding with a S72 life insurance policy.
Like all life insurance policies, it depends on
It’s underwritten in the same way as a normal life insurance policy.
Unfortunately, we can’t quote online for inheritance tax life assurance but give me a call on 05793 20836 and I’d be happy to help. If you prefer a quote over, just complete this short form.
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