Reviewable Whole of Life Insurance Policies – Pros and cons
Many people take out reviewable whole of life insurance policies to cover the cost of Inheritance Tax on their estates on death.
Reducing Inheritance Tax on Parental Residential Properties
For many families, the bulk of their family wealth will be tied up in their residential property. From an Inheritance Tax perspective, this means that any amounts in excess of the Inheritance Tax threshold of £325,000 per person (£650,000 per couple) will be liable to Inheritance Tax at a rate of 40%. This, in turn, means that for each £100,000 of the estate over these thresholds, the children would only be able to benefit by £60,000. Therefore it can be seen that finding ways to reduce Inheritance Tax on parental residential properties can help the children significantly.
Taxation Treatment for Gifted Properties
If you are considering gifting a property it is important to understand exactly what the taxation implications of this decision would be. The relevant taxes to consider would be Stamp Duty, Capital Gains Tax, Inheritance Tax and Income Tax.