In the U.K. more and more people are having to pay the inheritance tax leading to an increase in people insuring against that possibility. Americans concerned about estate or inheritance taxes can do the same.
People seem to complain about estate and inheritance taxes more than any other form of taxation, especially if they are affected by the tax. There is something about taxing a person’s assets after they pass away that rubs many people the wrong way.
This is true in the U.K. as well as the U.S.
In the U.K., the exemption limit for the inheritance tax is so low that many more people are having to pay the tax than ever before.
That has led families to figure out more ways to avoid the tax as The Telegraph reports in “Should you insure against an inheritance tax bill? This is what it costs.”
There are many ways to avoid estate and inheritance taxes. However, they cannot always be avoided completely and, in some situations, the avoidance measures might be undesirable for other reasons.
When that happens, the way to minimize the impact of the taxes is to purchase life insurance.
Structured properly policy benefits are not subject to the taxes and they provide the money necessary to pay the tax bills, without eating into the estate or inheritances.
Visit an estate planning attorney to learn if you and your family will be subject to estate or inheritance taxes and to figure out the best way for your family to plan for them.
Reference: The Telegraph (Sep. 2, 2017) “Should you insure against an inheritance tax bill? This is what it costs.”