Benefits of Inheritance Tax Planning
If you do not plan ahead, your family could be faced with a difficult decision between having to sell part of their inheritance or having to borrow money to pay the tax bill. If your family is likely to have to pay inheritance tax when you die, it is a good idea to protect them against this beforehand.
How can AIB Life Long Insurance (Inheritance Plan) give me the protection I need?
We have designed AIB Life Long Insurance (Inheritance Plan) to help you to provide the funds for your family to pay inheritance tax in a tax efficient way when you die. The plan will provide a cash payment when you die which your family can use to pay any tax bill that might arise at that stage.
How it works:
Inheritance tax planning, as part of your life insurance policy, can provide the necessary funds to meet the inheritance tax bills on your death.
Inheritance tax is the tax payable on all assets, including property that people receive from you when you die. The tax is payable on the full market value of the assets, less any tax free thresholds and allowances.
Inheritance tax is payable in one lump sum within a limited time period from the time of the inheritance.
This cover can easily be arranged as part of your Life Insurance policy (Section 72). 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.