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Inheritance Tax Planning
Ensure your chosen beneficiaries have the best chance of being able to receive and enjoy the value of your estate.
What is Inheritance tax?
It is a tax on the value of property and all other assets that people receive from you, when you die. While there is no limit on the amount you can inherit from your spouse, if your children and other relatives inherit assets from you they may be liable to pay a significant tax bill.
When is the tax payable?
The Inheritance tax must normally be paid in one lump sum within the following timeframes*: If the valuation date occurs in the period from 1st January to the 31st August, the inheritance tax is due for payment by 31st October of that year. If the valuation date occurs in the period from 1st September to the 31st December, the inheritance tax is due for payment by 31st October of the following year. This requirement can, of course, create a severe financial strain.
* Source: www.revenue.ie, May 2012.
Does the tax always have to be paid?
Yes, unless your beneficiaries total gifts and inheritances stay within their specific tax-free thresholds. There are a range of reliefs and exemptions that can reduce the "taxable inheritance". Talk to your AIB Financial Adviser, solicitor or tax advisor to help you estimate the likely tax bill your beneficiaries could face.
A practical solution is to arrange a Section 72 policy on your life (and that of your spouse, if applicable), which would be used to pay the Inheritance tax when it falls due.
How it works.
A Section 72 policy is a life assurance policy, set up under trust for your beneficiaries. It is designed to pay them sufficient money, on death, to meet the Inheritance tax that will then arise. Provided that the proceeds of the policy are used to pay the Inheritance tax bill due, the proceeds themselves will not be taxable.
Peace of mind.
Taking out a Section 72 policy will give you peace of mind, knowing that your chosen beneficiaries have the best chance of being able to receive and enjoy the value of your estate. Use the contact us button below to make an appointment today.
This product is provided by Irish Life Assurance plc. Allied Irish Banks, p.l.c. is a tied agent of Irish Life Assurance plc, for life and pensions business.
Allied Irish Banks, p.l.c. and Irish Life Assurance plc are regulated by the Central Bank of Ireland.