Keep it in the family

Landed estates are exposed to specific risks when it comes to IHT. An unexpected tax bill can cause difficult problems for families who may have to sell assets in order to raise the large sums that are often involved. That’s why insurance plays such an important part of an effective estate planning strategy.

When the parents of a family gifted a substantial sum to their son, the transfer created two potential IHT liabilities. The first would arise if they died within seven years of making the gift, which we covered with a Gift Inter Vivos policy. The second would be triggered if the son died unexpectedly, and we arranged a life insurance policy to cover this liability too.

Manage private wealth

Passing on your wealth throughout your lifetime is an effective way to reduce the IHT liabilities. It’s also a way for your family to enjoy your wealth together and gives you the opportunity to see the benefits it can bring to others while you’re still alive.

When a successful entrepreneur sold the business she had spent decades building, it also brought a new IHT liability. She gifted a substantial amount to her two children. Through a combination of a Gift Inter Vivos policy and life insurance policies, we made sure the estate will receive the sums required to cover any tax bill if the unexpected happens.­