Inheritance Tax Planning: Secure Your Legacy
Inheritance tax can significantly impact the assets you leave behind for your loved ones. A Section 72 life insurance policy, approved by Revenue, offers a strategic solution to cover potential inheritance tax liabilities, ensuring your beneficiaries receive their full inheritance without financial strain.
Tax-Efficient Estate Planning
A Section 72 policy is a Revenue-approved whole-of-life insurance plan designed specifically to pay inheritance tax liabilities. The proceeds from this policy are exempt from Capital Acquisitions Tax (CAT) when used to settle inheritance tax, preventing the need to liquidate assets like the family home to cover tax bills.
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Preserve Family Assets
Without proper planning, beneficiaries might be forced to sell inherited assets to pay the 33% CAT on amounts exceeding the tax-free thresholds. A Section 72 policy ensures that such assets can remain within the family, as the policy's payout covers the tax liability directly.
Flexible and Customisable Coverage
Section 72 policies offer flexibility to match your estate's specific needs. You can adjust the coverage amount to align with anticipated tax liabilities, and policies can be structured as joint-life (second death) to cover spouses. It's important to note that the policy must be taken out and paid for by the person whose estate will be taxed, and the maximum entry age is typically 75.