A long-standing client had, during his career, built up a substantial property portfolio. One of these properties he had decided to gift to his son who had recently married. But he was also concerned that if his death occurred in the next few years his son might be liable for a substantial amount of inheritance tax, which could force him to sell the property which he had been gifted.
A relatively straightforward solution was found: to transfer the property, but for our client to take out a life insurance policy that was arranged specifically to pay off any inheritance tax liability which would arise on the clients death. Arranging the policy on this very specific basis enabled us to achieve the client’s objective whilst minimising the cost of the insurance premiums involved.