If you are assessing your assets and concerned about leaving your children with a large inheritance tax bill then you may consider taking out a Revenue approved Section 72 Inheritance Tax life policy.
Section 72 insurance must be taken out on the life of the person leaving the inheritance and the premiums must be paid by that person. As long as certain conditions are met, the proceeds of the policy (when used to pay Inheritance Tax ) will reduce the beneficiaries’ Inheritance Tax liability. Whereas, if the money was left in a bank account, for example, this money will be seen by Revenue as an additional inheritance and may increase the tax bill.
