Making a will is not a treat, but it is something that we should all do....
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. Beyond the numbers, a Section 72 policy provides peace of mind, simplifies estate planning, and helps ensure a smooth transfer of wealth to loved ones. In this post, we explore the top non-financial benefits of taking out a Section 72 policy in Ireland.
One of the biggest advantages of a Section 72 policy is that it eliminates uncertainty. When an inheritance tax bill arises, the last thing beneficiaries need is financial stress. Knowing that a dedicated life insurance policy is in place to cover these costs offers peace of mind to both the policyholder and their heirs.
Beneficiaries won’t have to scramble for funds to cover inheritance tax.
The financial burden of estate taxes is lifted, allowing heirs to focus on more important matters during a difficult time.
In many cases, families inherit valuable assets but lack the liquidity to cover inheritance tax. Without a Section 72 policy, beneficiaries might be forced to sell family homes, businesses, or other important assets to pay tax bills.
Preserves generational wealth by keeping assets within the family.
Ensures that cherished family properties or businesses are not sold under pressure.
Gives heirs the freedom to make long-term decisions without immediate financial strain.
Losing a loved one is always a difficult experience. The added stress of inheritance tax deadlines can make the grieving process even harder. A Section 72 policy ensures that tax liabilities are covered, reducing financial worries during a time of mourning.
Beneficiaries can focus on personal matters rather than financial concerns.
The estate settlement process is smoother, avoiding unnecessary stress.
Executors and family members avoid the pressure of urgent financial decisions.
A Section 72 policy ensures that funds are immediately available to cover inheritance tax, which can speed up the estate administration process.
Beneficiaries don’t have to wait for assets to be sold or liquidated.
Probate complications are minimised, as tax payments can be settled without delay.
The entire estate can be distributed more efficiently and with fewer legal hurdles.
Disputes over inheritance are common, especially when some heirs receive more liquid assets than others. By removing the financial strain of inheritance tax, a Section 72 policy helps prevent conflicts among family members.
Avoids disagreements over who should cover tax liabilities.
Helps ensure that all beneficiaries are treated fairly.
Prevents resentment caused by the forced sale of shared family assets.
Many people want to take proactive steps to protect their estate and ensure their wishes are followed. A Section 72 policy provides certainty by locking in a strategy that covers inheritance tax in advance.
Helps ensure that assets are passed on as intended.
Provides a structured, tax-efficient plan for wealth transfer.
Removes uncertainty about whether heirs will need to arrange their own financing.
Unlike relying on investments or property values to cover tax, a Section 72 policy guarantees a payout, regardless of external financial conditions.
Protects against market downturns or declining property values.
Ensures that tax liabilities are covered even if other assets don’t perform as expected.
Beneficiaries won’t have to worry about timing the sale of assets to meet tax deadlines.
Once a Section 72 policy is in place, there’s no need for constant management or adjustments. Unlike investment-based estate planning strategies, a Section 72 policy provides a simple and effective long-term solution.
No need to regularly adjust investment strategies to account for tax changes.
The policy remains in place for life, ensuring tax coverage when it’s needed most.
Provides a hands-off solution to a complex estate planning issue.
While the financial benefits of a Section 72 policy—particularly tax savings—are well-known, the non-financial advantages are equally significant. From providing peace of mind to simplifying estate administration and preserving family assets, a Section 72 policy offers comprehensive protection beyond just numbers.
If you’re considering inheritance tax planning, it’s worth exploring how a Section 72 policy can provide long-term security, certainty, and simplicity for you and your loved ones.
For expert advice on whether a Section 72 policy is right for you, contact section72.ie today.
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