IHT planning: big Life Ins policy ?

IHT planning: big Life Ins policy ?

Author
Discussion

big ant

Original Poster:

305 posts

177 months

Sunday 26th March 2017
quotequote all
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.

big ant

Original Poster:

305 posts

177 months

Sunday 26th March 2017
quotequote all
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

big ant

Original Poster:

305 posts

177 months

Sunday 26th March 2017
quotequote all
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.

big ant

Original Poster:

305 posts

177 months

Tuesday 28th March 2017
quotequote all
Good stuff, allowing a relatively simple solution compared to Trusts, excessive gifting etc...

Any recommended companies - 2 or 3 ? I just checked Aviva as have house and cars with them !

BA

big ant

Original Poster:

305 posts

177 months

Tuesday 28th March 2017
quotequote all
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