Section 72

How Setting Up a Section 72 Policy in Trust Can Benefit You

Trust form section 72

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.

Section 72 insurance whole of life cover benefits

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.