Section 72 Cover

Section 72 insurance provides protection against the incurring of substantial tax bills upon the inheritance of an asset. Essentially, having Section 72 cover frees your beneficiaries of any tax obligations they may have if they inherit your property or assets.

Thus, the policy holder must be the person whose assets will be passed down. Note that the beneficiaries must prove the need for the existence of the policy (the bestowing of a tax bill such as CAT upon death of policy holder) by providing proof of assets held or a Will.

Keep in mind that, in the case of a transfer of assets between one spouse or civil partner to another, it is recommended you take out a joint policy. This is due to the fact that CAT is not applicable when the inheritor is your spouse or civil partner. Thus, taking out a joint policy means that the beneficiaries which are next in line can avail of this tax write-off upon the death of the second spouse/civil partner.

Section 72 cover is taken out on a whole of life basis which means that it will pay out regardless of the age at which you die. You must be relatively organised and have your affairs in order as the maximum age for effecting a policy is 74.

At MPFS, we can help you calculate the accurate amount of Section 72 cover your benefactors may need by taking into account any tax-free thresholds or allowances you may be eligible for. We can also assist you in devising a cost-effective strategy to pay off your premiums and secure protection against potentially massive tax bills your loved ones could be faced with.

Section 72 cover is only provided by 3 life assurance companies in Ireland – Zurich, Irish Life and Royal London. MPFS proudly deals with all three.