How to Calculate Inheritance Tax (CAT) in Ireland: A Guide for Estate Planning
Learn how to calculate inheritance tax (CAT) in Ireland, including tax-free thresholds and rates. Use real-world examples to estimate your beneficiaries’ tax liabilities.
The Non-Financial Benefits of Taking Out a Section 72 Policy in Ireland
When people consider Section 72 policies, they often focus on the financial benefits—primarily the tax savings that help reduce inheritance tax liabilities. However, these policies offer a range of non-financial advantages that can be just as valuable.
How Setting Up a Section 72 Policy in Trust Can Benefit You
When it comes to estate planning, one of the key concerns is how to reduce the tax burden for your beneficiaries. A Section 72 life insurance policy is designed to help cover inheritance tax (CAT) liabilities. But did you know that by placing your policy in trust, you can gain even more advantages?
Inheritance Tax Changes in Budget 2025.
As expected, the rate of CAT payable on any gifts or inheritances has remained unchanged, however the threshold before your beneficiaries have to pay any tax has increased.
Safeguarding Your Legacy: Unveiling The Power of Section 72 Insurance.
In the realm of financial planning, ensuring the smooth transfer of wealth to loved ones is paramount. For couples like John and Mary, aged 54, the prospect of leaving behind a substantial estate raises important questions about taxation and inheritance. Without proper planning, their beneficiaries could face a hefty tax bill, potentially jeopardising the legacy they wish to leave behind. Let’s explore how Section 72 insurance serves as a vital tool in mitigating this risk and securing their family’s future.
Does Starting a Whole of Life Section 72 Insurance Policy Make Financial Sense?
Initiating a Whole of Life Section 72 insurance policy for estate planning purposes requires a thorough examination of various factors, including tax implications, inflation considerations, and the inherent uncertainty in calculating inheritance taxes. While the numbers provide a framework for decision-making, it’s advisable to consult with a financial advisor to assess the suitability of such a policy based on individual circumstances and long-term financial goals.
Inheritance Tax Changes in Budget 2023
This is something that we are meant to be grateful for from Budget 2023. Despite the continued rising in property values, where the family home will usually be the largest part of an individual’s estate, there has been no increase in the threshold where you can pass assets to your children without them having any CGT liability. So, you can give your children up to €335,000 each in their lifetime before they would have to pay tax at a rate of 33%. Unless the estate also includes a generous portion of liquid or cash assets, the family home will have to be sold to meet with the tax demand.
Mixed, opposing opinions for Inheritance Tax review.
It seems that whilst the Commission on Taxation & Welfare recommends a dramatic reduction in the already reduced individual threshold at which someone can inherit assets without having to pay inheritance tax, politicians aren’t champing at the bit to implement it.
Changes To Inheritance Tax for Budget 2022
In a nutshell, everything remains the same. Following the release of Budget 2022, the 3 main thresholds remain as they were, as does the rate of tax payable on any amounts inherited in excess of the thresholds. The rate of tax payable stays at 33%.
Are the premiums worth it?
A Section 72 insurance policy is basically a guaranteed, whole of life insurance policy, but written with very specific instructions so that the Revenue Commissioners know not to include the proceeds of the policy as part of the life assured’s estate for inheritance tax purposes.