FAQ

Frequently Asked Questions...

CAT is a tax you pay when you receive a gift or an inheritance. CAT comprises two separate taxes – a Gift Tax payable on lifetime gifts and an Inheritance Tax payable on inheritances received on death. It is the person receiving the gift or inheritance who is liable to CAT and not the person or estate providing the benefit.

Yes – that is the exact purpose behind effecting a Section 72 insurance policy. Its’ sole purpose is to provide a lump sum, on death of the insured person, which must be used to pay any inheritance taxes due by the beneficiaries.

The tax is inevitable to some degree, but how it is paid for can be managed and prepared for in advance.