Inheritance Tax Insurance
Taking out a life insurance policy may help beneficiaries pay for inheritance tax on any assets that you leave behind when you pass away.
Inheritance tax and insurance
Although life insurance cannot negate the possibility of inheritance tax it can be used to help pay for it. For it to be possible to do this you must ensure that your life insurance policy is written into trust, otherwise any policy pay out may be counted towards the value of your estate. Depending on your policy, you may be able to place an insurance policy into trust even after you have taken it out.
When you pass away, Inheritance tax is payable on any assets belonging to your estate worth in excess of £325,000. Property, capital, investments and any gifts given during the last seven years of your life can all contribute towards the value of your estate. The current rate of taxation is 40% on anything above the £325,000 threshold.
Inheritance tax planning and professional advice
For advice on whether an insurance policy may help to pay for inheritance tax on your estate, or on whether taking out an insurance policy may be the best option for you, speak to a member of an independent inheritance tax planning advice team for a free initial consultation.
ABOUT TRUST ONLINE