Sudden death and inheritance, etc. is often a taboo subject where there’s a lot to consider. But one thing is certain: having an open discussion with all everyone involved remains essential. So, talking about it is the message here! Then map out the details of your estate and your heirs – and check the inheritance tax rates, too. That way, you can minimise the tax to be paid as much as possible with a gift, legacy or accretion clause.
Life insurance enables you to build up a very nice supplementary pension. And at the same time, you can make things financially easier for your loved ones. Because there’s also a solution for transferring your assets to your children in the form of a Branch 21 or Branch 23 product. The capital you accumulate falls outside your estate after death, although you will pay inheritance tax in most cases.
Unlike a will, a gift is in principle irrevocable and immediate. However, the donor can attach certain conditions to the gift, such as usufruct for the donor, a ban on selling or renting the property, interest in exchange for the gift ... In some cases, inheritance tax does remain payable, but you catch make provision for this with a gift insurance policy.
With a Branch 23 life insurance policy, you save for your pensions, but you can also make arrangements for your estate when you die. Because you can designate a beneficiary in life and one in death.
If your heirs take out death insurance with you as the insured party, then, in the event of your death, they will receive an amount to pay inheritance tax.
Making an unregistered private gift? Nice gesture. But with this death insurance, you can avoid the recipient having to pay inheritance tax if you die within five years.
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