You have worked hard to build up your assets. It is only natural that you would want to leave as much of it as possible to the people you choose. Without careful planning however, inheritance tax could mean that your money does not stretch as far as you had thought. Your family may be forced to dispose of your assets in order to meet any inheritance tax liability - currently 40% of the value of your estate over the inheritance tax threshold.
Fortunately there are a number of solutions that will help reduce the burden of inheritance tax on your dependents. These include insuring against the expected cost of inheritance tax. A qualifying Life Assurance policy can be arranged with a sum-assured equal to the anticipated inheritance tax liability. If the policy is placed 'in trust' then its proceeds would be held outside of your estate upon death. This enables your beneficiaries to use the lump-sum paid out by the policy to settle any inheritance tax bill - without having to dispose of any assets.
Sentinel regularly advises on insuring against the expected cost of inheritance tax and a variety of structures to help mitigate or substantially reduce this liability. These include assistance with Discounted Gift Trusts (DGTs), Business Property Relief (BPR) and other trust arrangements. We have access to the entire market and can source the most competitive and suitable policies available.