Section 72 examples
A home, savings or a business can leave your family with an inheritance tax bill. These examples show how Section 72 provides money to pay it—and how the effective cost to your estate can be much lower.
Show me my own figuresPersonal quotations and clear explanations from Brian Whelan QFA
Start with the benefit
This quotation is for a male aged 55 next birthday and female aged 55 next birthday, both non-smokers. Their joint-life second-death policy provides €600,000 cover for €705.64 a month, guaranteed for life.
Money for the CAT bill
Provided by the policy to settle the beneficiaries’ inheritance tax.
Effective cost at age 83
Total premiums, less the inheritance tax saved on money used for those premiums.
Saving to the estate
Compared with paying the €600,000 bill from estate assets.
| If the second death occurs at age 83 | Without a policy | With Section 72 |
|---|---|---|
| Beneficiaries’ CAT bill | €600,000 | €600,000 |
| Where does the money come from? | The estate or another source | The policy payout |
| Need to sell assets or borrow? | May be necessary if there is not enough cash | The policy supplies the money for this bill |
| Cost to the estate of funding the bill | €600,000 | €159,799.23 effective cost |
Same €600,000 bill. A different way to fund it. Without cover, your beneficiaries need to raise the money in one lump sum and may have to sell assets. In this example, the couple were quoted €705.64 a month.* It pays out the full €600,000 at the second death, whatever the age at that point, provided the policy stays in force.
*This quote is for a man and a woman, both aged 55 next birthday and both non-smokers, with €600,000 of joint-life second-death cover. Your premium depends on age, health, smoking status, who is covered and how the policy is set up.
If the second death occurs at age 83 in this example, 338 monthly payments total €238,506.32. Here are the two savings compared with paying the bill from estate assets.
€600,000 − €440,200.77 = €159,799.23 effective estate cost
The €600,000 tax bill is still payable. The policy supplies the money to settle it. The couple pay the premiums over time, and the effective estate cost reflects the inheritance tax saved on that premium money.
The same policy still provides €600,000. With 542 monthly payments, total premiums are €382,456.88. The 33% tax saving on those premiums is €126,210.77, giving an effective estate cost of €256,246.11 and a saving of €343,753.89 compared with paying the bill from estate assets.
Both illustrations use the current 33% CAT rate, assume the premium money would otherwise remain in the taxable estate, and use the policy payout to settle the €600,000 CAT bill. Future tax rules and estate values can change; we review the plan as circumstances change.
Explore the full calculation →
Get my own quote and comparisonFamily home example
A married couple, both aged 55 next birthday and non-smokers, want €150,000 of joint-life, second-death Section 72 cover. Zurich quoted €221.55 per month, the lowest of the three quotes I compared for this particular setup.
The premium for your own cover will depend on your circumstances. Read the family-home example or request a personal quote.
Four everyday inheritance examples
The allowance depends on the relationship between the person leaving the inheritance and the person receiving it. Tax is 33% of the amount above the remaining allowance.
These examples use the allowances from 7 October 2026, assume each person has their full allowance available and apply no other reliefs or exemptions. Earlier taxable gifts and inheritances in the same group reduce the allowance; it is not a new allowance from each parent. Revenue explains the relationship rules and exceptions.
Scenario A · Two children
Each child inherits €450,000. Their individual €420,000 allowances leave €30,000 each subject to tax.
| Each child inherits | €450,000 |
|---|---|
| Their tax-free allowance | €420,000 |
| Amount taxed | €30,000 |
| Tax per child at 33% | €9,900 |
| Inheritance tax bill | €19,800 total |
What Section 72 could do: €19,800 of cover would provide the money for both tax bills, leaving the inheritance available to the children.
Scenario B · A niece
The usual allowance for a niece is €44,000. A smaller inheritance can still create a substantial tax bill.
| She inherits | €200,000 |
|---|---|
| Her tax-free allowance | €44,000 |
| Amount taxed | €156,000 |
| Inheritance tax bill | €51,480 |
What Section 72 could do: €51,480 of cover would pay this bill, so she does not have to take that money from her inheritance.
Scenario C · A daughter
A daughter inherits a house worth €600,000. She has her full €420,000 allowance available.
| Value of the house | €600,000 |
|---|---|
| Her tax-free allowance | €420,000 |
| Amount taxed | €180,000 |
| Inheritance tax bill | €59,400 |
What Section 72 could do: a €59,400 payout gives her the money for the tax, helping her keep the home without borrowing or selling it to raise that amount.
Scenario D · Two grandchildren
Each grandchild receives €150,000. Using the usual €44,000 allowance, €106,000 each is subject to tax.
| Each grandchild inherits | €150,000 |
|---|---|
| Their tax-free allowance | €44,000 |
| Amount taxed | €106,000 |
| Tax per grandchild at 33% | €34,980 |
| Inheritance tax bill | €69,960 total |
What Section 72 could do: €69,960 of cover would supply the money to settle both tax bills.
In each example, Section 72 provides a separate fund for the tax. The payout used to pay the beneficiaries’ CAT bill is itself exempt from CAT.
The right premium depends on who is insured, their age, health and smoking status, and the amount of cover. The €705.64 premium above belongs to that specific €600,000 quotation; your figures will be worked out for you.
You do not need a perfect estate valuation or a finished tax calculation before contacting me. An approximate value and an idea of who will inherit are enough to start the conversation.
I’ll compare Section 72 cover from Royal London, Zurich and Irish Life and email your personal quotation and report. You’ll see the premiums, the potential savings and a clear comparison—with personal guidance through the insurance process from start to finish.
Request my quote and personal reportHave a question first? Call Brian on 01 668 6136.
