IHT planning: big Life Ins policy ?
Discussion
Just wondering if anyone has bought a Policy that pays upon death, and thus cancels out IHT bill ?
Feasible ?
Getting bogged down with 'advisers' opinions, when just want a simple future after working so hard, yet don't really want the tax man to waste it and have the last laugh !
Thanks.
Feasible ?
Getting bogged down with 'advisers' opinions, when just want a simple future after working so hard, yet don't really want the tax man to waste it and have the last laugh !
Thanks.
Thank you. Tried an online quote with Aviva - 54 years old, £2m insurance, £400 monthly premium.....which if I add up 20 years x 12 x £400 = £100k....
Seems like a bargain.
What am I missing ??
No need to get tied up in unnecessary early Gifts, etc...and for £5k / year, problem is mostly handled.
BA
Seems like a bargain.
What am I missing ??
No need to get tied up in unnecessary early Gifts, etc...and for £5k / year, problem is mostly handled.
BA
You need a Whole of Life to definitely sort IHT, make sure you look at guaranteed premiums rather than those with investment content, they tend to go up a lot later.
They look cheap typically because many people buy them and then cancel them early. They effectively cross subsidise those who keep the policy for life.
They look cheap typically because many people buy them and then cancel them early. They effectively cross subsidise those who keep the policy for life.
big ant said:
Thanks again. Whole of Life - ok will try to check that, but guessed if I hadn't gone by 75, I sure hope I'd sorted my gifting and spending by then ;-).
Still seems too cheap, for an event that is sure to happen.
Circa 80% of healthy, underwritten 54 year olds will survive until age 74.Still seems too cheap, for an event that is sure to happen.
A decent guaranteed whole of life contract for a 55 year old single life is circa £13-14,000 per annum per million of cover, joint life just over £9k per annum. Reviewable policies are where it gets really cheap, less than £1k per annum per million joint life.
Reviewable plans are guaranteed for the first 10 years then expect premiums to ramp up! Then reviewed every 5 years.
Reviewable plans are guaranteed for the first 10 years then expect premiums to ramp up! Then reviewed every 5 years.
Ant,
Make sure it's written in trust (as previously said), and there are a few products out there which can help you more, depending on your circumstances. Old Mutual has a good one, for instance. Also, will you be gifting anything in the meantime at all? You might like to fuse a Gift Inter Vivos policy into things, that could save you quite a bit. Are you married? When you die, will the problem still be there, but on your partner's shoulders?
Don't forget that from next month, your primary home may be added to your estate, in the event you leave it to a close, bloodline relative. If you're married or have a civil partner, that will extend your nil rate band exemption over the course of the next few years, to £1,000,000. You may also chip away at your IHT liability by bequeathing to charities of political parties.
Finally, make sure your will is cast iron. 👍
Make sure it's written in trust (as previously said), and there are a few products out there which can help you more, depending on your circumstances. Old Mutual has a good one, for instance. Also, will you be gifting anything in the meantime at all? You might like to fuse a Gift Inter Vivos policy into things, that could save you quite a bit. Are you married? When you die, will the problem still be there, but on your partner's shoulders?
Don't forget that from next month, your primary home may be added to your estate, in the event you leave it to a close, bloodline relative. If you're married or have a civil partner, that will extend your nil rate band exemption over the course of the next few years, to £1,000,000. You may also chip away at your IHT liability by bequeathing to charities of political parties.
Finally, make sure your will is cast iron. 👍
Hi Ginge R,
Thanks for those thoughts. Briefly, divorced / single, gifting started with 1m, but whilst some way to go, age 54 I can see there will soon be a moment when desire to retain control of companies and assets exceeds desire to gift ! Hence, the WL Ins looks very interesting...will look at the GIV too, thx. UK Ltd Co holding group, still growing, so need to buy c2m insurance cover and maybe re-assess every 5 years based on Net Wealth....so could top-up policies later.
House....would fit just under the 1m limit, but only a live in girlfriend for now, and after bruising divorce, not sure if or when I'll get comfortable with that idea....
Wills - recently sorted thru Solicitors.
Ins Policy written in Trust, yep, read that, thanks.
Was thinking, if can spend 400-500 / month, and buy even 20 years protection, gives me time to continue building the business, yet at the same time, edge up the Gifts, and see where I am in 10-15 years from now. The Whole Life also makes a lot of sense, as can just ignore a large IHT %....
OK, as usual, PH sets a roadmap, now to dig a little or get some professional help.
Cheers. BA
Thanks for those thoughts. Briefly, divorced / single, gifting started with 1m, but whilst some way to go, age 54 I can see there will soon be a moment when desire to retain control of companies and assets exceeds desire to gift ! Hence, the WL Ins looks very interesting...will look at the GIV too, thx. UK Ltd Co holding group, still growing, so need to buy c2m insurance cover and maybe re-assess every 5 years based on Net Wealth....so could top-up policies later.
House....would fit just under the 1m limit, but only a live in girlfriend for now, and after bruising divorce, not sure if or when I'll get comfortable with that idea....
Wills - recently sorted thru Solicitors.
Ins Policy written in Trust, yep, read that, thanks.
Was thinking, if can spend 400-500 / month, and buy even 20 years protection, gives me time to continue building the business, yet at the same time, edge up the Gifts, and see where I am in 10-15 years from now. The Whole Life also makes a lot of sense, as can just ignore a large IHT %....
OK, as usual, PH sets a roadmap, now to dig a little or get some professional help.
Cheers. BA
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