After taking the appropriate steps to put in place an Inheritance Tax planning strategy, if there is still the potential likelihood of a liability on your estate or if you have made gifts which have created a potential liability for the recipients if you die within seven years, we can help you review how you could fund this liability in the most efficient way.
By using life assurance cover, it is possible to use the proceeds to fund a potential Inheritance Tax liability whenever it may arise. Life assurance cover is often the only means of providing immediate protection against a future Inheritance Tax liability. Each premium payment is classed as a gift for Inheritance Tax purposes.
The two common policy types are:
Whole of life policies – To generate a payment on death to cover the tax liability on the estate.
Reducing term policies – To cover the tax liability payable by the recipient of a gift if the donor dies within seven years.
Any policy designed to produce benefits free of Inheritance Tax for your chosen beneficiaries must be written in an appropriate trust. The trust will enable policyholders to retain control over the ultimate destination of the benefits.
Investment advice will be provided by our sister company ad+ Financial.
The value of your investments can go down as well as up and you may get back less than you invested.
The Financial Conduct Authority does not regulate Tax Advice, Trusts, Cash ISAs and National Savings and Investments.
Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor.
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