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Gift Planning and Protection Insurance
Manage episode 430649955 series 2867124
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Hi everyone, I’m back with a short episode on how you can use life insurance to protect against the tax made on gifts. A lot of people think of gift planning as something that millionaires do and whilst that can be the case, many people are making gifts all the time without realising it.
Giving a financial gift is a lovely thing to do, but without the right protection in place the person who receives the gift could face a rather unexpected surprise of a tax charge. The tax on gifts is for 7 years from the date of the gift if the person making the gift dies during this time, and there are some quick and effective ways of setting up life insurance to help with any tax that might be due.
The key takeaways:
- The potential tax on a gift is 40% of the full gift amount and this tapers over the next 7 years
- Your choice of Trust will be a key part in protecting the gift beneficiary
- A case study of building a gift planning solution with 5 separate term policies
I will be back after the summer with Matt Rann who will be joining me to talk about all things protection insurance and thyroid disorders.
Remember, if you are listening to this as part of your work, you can claim a CPD certificate on our website, thanks to our sponsors Octo Members.
If you want to know more about how to arrange protection insurance, take a look at my 13 hour CPD Protection Insurance in Practice course here and 1 hour CPD Protection Competency Exam here.
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