\u00a0<\/p>\n
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We have one of the highest death taxes in the world here in Ireland.<\/p>\n
It\u2019s more commonly known as inheritance tax.<\/p>\n
Revenue will take a 33% shaped slice out of what you intended to leave to your kids unless\u00a0you put a plan in place to pay their inheritance tax <\/a>when you exit stage left.<\/p>\n When you die and leave something nice behind, the person receiving the gift may have to pay tax on it.<\/p>\n Why \u2013 because the government are cruel bastards and want to tax you out the wazoo when you\u2019re alive and also when you\u2019re 6 feet under\/buried at sea\/up in smoke.<\/p>\n Regardless of the size of the inheritance, there is no inheritance tax if you leave money to your spouse.\u00a0 And this right here folks is the real reason to get married. ?<\/p>\n But your children could be hit with a massive tax bill.<\/p>\n The first \u20ac400k your kids receive in their lifetime is tax-free.<\/p>\n Anything above \u20ac400k is taxed at a whopping 33%.<\/p>\n Let\u2019s say you have one child, Pixiebelle Moonface, who receives a house worth \u20ac600,000 and is also lucky enough to inherit shares valued at \u20ac86,000.<\/p>\n When you pass away and leave everything to her, you also leave her with an will have an inheritance tax bill of \u20ac94,380<\/p>\n What if little Pixiebelle doesn\u2019t have that sort of cash?<\/p>\n She\u2019ll have to sell the family pile to pay the tax bill.<\/p>\n A home that has been in your family for generations, it\u2019s on the best road in the village.<\/em><\/p>\n You probably want to avoid seeing young Pixie leaving in a semi-d (perish the thought), and you can with some careful forward planning<\/p>\n Inheritance tax life assurance is a special type of life insurance in Ireland,<\/a> the proceeds of which are tax-free if used to pay an inheritance tax bill.<\/p>\n It\u2019s also known as Section 72 Life Insurance<\/a>.<\/p>\n In the example above, you could take out a Section 72 life insurance policy for \u20ac94,380 on youself.<\/p>\n When you head off, the policy would pay Pixiebelle\u2019s tax bill so she would get the property and shares tax-free.<\/p>\n Well, that depends on how much of an inheritance you plan to leave.<\/p>\n If you\u2019d like an estimate, complete this questionnaire<\/a> and I\u2019ll be right back with some options.<\/p>\n However, if your personal situation is complex, you should take independent tax advice before proceeding with a S72 life insurance policy.<\/p>\n Like all life insurance<\/a> policies, it depends on:<\/p>\n It\u2019s underwritten <\/a>in the same way as a normal life insurance policy.<\/p>\n As a rule of thumb, S72 life assurance premiums are 15x the price of term life insurance.<\/p>\n How much do you love your kids? ?<\/p>\n Is Tax Liable on Life Insurance Payouts in Ireland?<\/a><\/p>\n Unfortunately, we can\u2019t quote online for inheritance tax life assurance but give me a call on 05793 20836, and I\u2019d be happy to help. If you prefer a quote over, just complete this short form.<\/a><\/span><\/p>\n Nick McGowan<\/strong>How does inheritance tax work?<\/h2>\n
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<\/p>\nExample:<\/h3>\n
![\"inheritance](\"https:\/\/lion.ie\/wp-content\/uploads\/2022\/09\/IHT.jpg\")
<\/p>\nWhat is inheritance tax life assurance?<\/h2>\n
How much inheritance tax life assurance do you need?<\/h2>\n
How much does a Section 72 Policy cost?<\/h2>\n
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Further reading:<\/h2>\n
Over to you\u2026<\/h2>\n
lion.ie | making life insurance easier<\/strong><\/p>\n
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