An often overlooked but key piece of financial planning. This is not on most people’s radar but when you realise €335,000 per child is the inheritance tax threshold, the problem comes into focus.
Only by calculating the combined value of your home, business, pension and investment assets do you realise that everything above €670,000 (two children), €1,005,000 (three children) etc is going to be taxed at 33% that the problem becomes stark and quantifiable. Many do not realise this is an issue that can be solved.
There are innovative solutions in the marketplace for this including one of the more groundbreaking policies ever launched in Ireland. This policy insures both spouses for the inheritance tax liability. On death, the cover amount is received by the estate tax-free for settlement of the bill thus leaving all the assets in the children’s names.
The remarkable part of this policy is that after 16 years if you have not used the policy you are guaranteed that 70% of the premiums paid are returned to you. This is not conditional on anything other than you deciding you want to end the policy. This life cover can protect your family from a substantial tax bill in the medium term while giving you time to plan for alternative ways to reduce the liability.
Takeaway #6 A comprehensive review will identify if an inheritance tax liability is an issue for you. Seek out a CERTIFIED FINANCIAL PLANNER™ for guidance.