Broadstone Regulatory & Risk Advisory Limited’s Post

How is Insurance Premium Tax unfairly burdening the health insurance market? Check out the below insights from Cara Spinks, Head of Insurance Consulting at OAC Limited - Member of the Broadstone Group in the Daily Mail 👇

The amount the government collects through Inheritance Tax (IHT) is on the rise, and freezes to allowances mean it’s expected to increase further. If your family could face a bill when you pass away, life insurance could provide a valuable way to cover the expense. According to MoneyAge, the amount collected through IHT hit a record £7.5 billion in 2023/24. An IHT bill could not only mean passing on less wealth to your loved ones, but it may be stressful too. The portion of your estate that exceeds thresholds could be liable for IHT at a standard rate of 40%, and your family might need to consider which assets to sell to cover the expense. Understanding whether IHT may be due on your estate could help you make provisions that will ease the burden for your family. Read on to find out more… #IHT #Tax https://lnkd.in/duVwZfxX

A decedent's life insurance policy is not considered part of an estate. Its funds are distributed directly to the named beneficiaries on the policy. https://bit.ly/44vxDj7 #taxation #estateplanning #advisory #cpafirm #dntwtoronto

Life insurance, specifically asset transfer solutions, can provide support for individuals worried about outliving their spouse and the financial challenges that may arise from critical care and chronic care emergencies. Prosperity Life offers solutions that cater to those client needs and more! #LegacySolution #LegacyBenefit

Life Insurance will help!

The UK budget: a life insurance response to solve inheritance tax. Part 1. From Vie International’s Managing Director, Grayson Dufrene, here is the first part of his view of the UK budget from the perspective of the life insurance industry. He considers how protection solutions can be used to keep more high and ultra-high net worth families in the UK: * Protected Trusts by non-domiciled individuals who previously enjoyed very generous income/gains and inheritance tax (IHT) benefits are in a very different position going forward. Private Placement Life Insurance (PPLI) is a very powerful planning tool when income tax and capital gains taxes are levied on trusts. Navigating global PPLI policy design, jurisdiction and carrier options is critical in making sure that trust assets continue to enjoy tax free growth over the long term. Working with a team of experienced life insurance professionals will be paramount to delivering the optimal result for settlors, trustees and family members. * Inheritance taxes on trusts at the 40% rate or trusts caught in the Relevant Property regime with a 6% charge on each 10-year anniversary will have a number of options to use traditional death benefit life insurance (non PPLI policies) to insure for a fraction of the cost of the IHT charge. Some international policies, in particular those sourced from the USA, can reduce the value of the relevant property in the offshore trust for purposes of the 6% charge, or for other trusts can create a tax-free lump sum to settle the inheritance taxes. It is important that offshore trustees and family members engage an insurance professional that is properly licensed and qualified to survey the life insurance market in multiple jurisdictions. By engaging professionals with experience in having US life insurance policies owned by offshore trusts can bring the most dynamic global life insurance market into play. These are some solutions and there will be many other situations where the life insurance industry will provide value to families and businesses going forward. Part 2 will follow soon where Grayson considers people recently arrived in the UK, those who have accumulated significant pensions and those who are considering leaving the UK. Author Grayson Dufrene, Managing Director grayson.dufrene@vieinternational.com +44 (0)20 3457 1332 Version 1.1 Date 7 November 2024 #usuk #iht #inheritancetax #ppli #lifeinsurance #budget

Some comments on Grayson’s timely post further below: The US market certainly provides more flexibility for offshore trusts to source traditional life insurance for IHT planning, particularly at higher sums assured. It’s an interesting additional benefit where policies with no cash value may reduce the value of the trust assets and in doing so potentially reduce the ongoing relevant property charges – especially meaningful for younger clients anticipating several charges during their lifetime. On the income and gains side, there’s an increasing awareness of how insurance wrappers can, in some cases, effectively continue the gross roll up treatment previously enjoyed by protected settlements. UK retail offshore bonds have their place. Our experience is that PPLI policies offer more sophisticated and customisable solutions that often better address affluent clients’ needs. In the appropriate circumstances, formerly protected trusts can take out PPLI to mitigate the increasing tax burden and avoid the unenviable discussion around excluding family members from benefit.

The amount the government collects through Inheritance Tax (IHT) is on the rise, and freezes to allowances mean it’s expected to increase further. If your family could face a bill when you pass away, life insurance could provide a valuable way to cover the expense. According to MoneyAge, the amount collected through IHT hit a record £7.5 billion in 2023/24. An IHT bill could not only mean passing on less wealth to your loved ones, but it may be stressful too. The portion of your estate that exceeds thresholds could be liable for IHT at a standard rate of 40%, and your family might need to consider which assets to sell to cover the expense. Understanding whether IHT may be due on your estate could help you make provisions that will ease the burden for your family. https://ow.ly/jmGT50SycH1

The amount the government collects through Inheritance Tax (IHT) is on the rise, and freezes to allowances mean it’s expected to increase further. If your family could face a bill when you pass away, life insurance could provide a valuable way to cover the expense. According to MoneyAge, the amount collected through IHT hit a record £7.5 billion in 2023/24. An IHT bill could not only mean passing on less wealth to your loved ones, but it may be stressful too. The portion of your estate that exceeds thresholds could be liable for IHT at a standard rate of 40%, and your family might need to consider which assets to sell to cover the expense. Understanding whether IHT may be due on your estate could help you make provisions that will ease the burden for your family. https://ow.ly/TYAk50SycH0

Inheritance tax planning or Estate planning should be on your radar if it will effect your loved ones. #lifeinsurance #Inheritancetax #estateplanning