Inheritance taxes have led families in the U.S. and the U.K. to figure out ways to avoid it. However, insurance could also help ease the burden, according to The Telegraph in "Should you insure against an inheritance tax bill? This is what it costs."
There are many ways to avoid estate and inheritance taxes but they cannot always be avoided completely and, in some situations, the avoidance measures might be undesirable for other reasons.
When that happens, the way to minimize the impact of the taxes is to purchase life insurance.
Structured properly policy benefits are not subject to the taxes and they provide the money necessary to pay the tax bills without eating into the estate or inheritances.
An estate planning attorney can advise you in creating an estate plan that meets your unique circumstances, as well as advise you on the likelihood of an estate tax.
Reference: The Telegraph (Sep. 2, 2017) "Should you insure against an inheritance tax bill? This is what it costs."
