If you have a mum or dad over 50 then please share this article, it could save you a fortune!
Too many times the unexpected happens a boom – loved’s ones lose thousands if not hundreds of thousands to the tax man. What’s the point of working hard throughout life only to deprive your loved ones by leaving a nice fat sum to HMRC?
Factoring tax into your estate
Put simply, you can take out a life insurance policy to cover the cost of your Inheritance Tax liability. Your liability can be calculated and a life insurance policy set up now to cover this liability.
So if you have Inheritance tax liability of say £100,000 you can take out life insurance policy now to pay out £100,000 on your death to cover your estate tax liability. This means your loved one’s get 100% of your estate and it can help protect your home from having to be sold to pay the tax.
It can also help ensure your gifts to family and friends in the last seven years of your life, are protected from this tax. In short, it can give you peace of mind that you’re not lumbering your family and friends with a hefty tax bill when you pass away.
– You set up an insurance policy.
– You set up a Will.
– You clearly specify that the life policy is held in trust and to be used to cover your inheritance tax bill.
– When you die, the policy pays out to the trust, which as per your instructions, is used to pay the tax liability.
A monthly life insurance premium now is going to give everyone peace of mind that everything is organised and covered. Don’t wait until are older or unhealthier – as you will pay more for the cover!
It is best to get bespoke advice to cover your exact needs and circumstances
Please don’t buy a cheap life insurance policy online – get independent advice from a specialist who will source the market for you to get the best value cover for your needs, help you with all your paperwork, calculate your liability and ensure you have the correct level cover.