We know that planning for the future is more than just about protecting your assets, it’s about making sure your loved ones are taken care of when you’re no longer here. With over two decades of experience, we specialise in helping individuals like you manage the complexities of life insurance inheritance tax (IHT). We work closely with you to offer a personalised approach that protects your wealth, reduces tax liabilities, and ensures that your estate is passed on to your beneficiaries.
To put the future of your finances in your own hands, get a free quote today. Alternatively, give us a call on 0345 565 0935 to speak with one of our life insurance experts.
Get a no-obligation quoteWhat is Life Insurance Inheritance Tax?
When you pass away, the value of your estate and any life insurance payout, may be subject to inheritance tax (IHT). While life insurance payouts are generally tax-free, they could still be included in your estate for IHT purposes, potentially increasing your estate’s value beyond the tax-free threshold. This could mean a significant chunk of your estate will be taxed at 40%.
In the UK, the standard IHT threshold is £325,000 for individuals, and £650,000 for married couples or civil partners. Estates exceeding these limits will end up getting taxed. But here’s the good news: by writing your life insurance policy into trust, the payout can be excluded from your estate, potentially avoiding IHT altogether. This also means the payout can be made to your beneficiaries faster, bypassing the probate process.
Life insurance policies are a great way to plan for IHT, offering long-term benefits and potentially better returns than traditional investment options when considering tax implications. And if you’re married or in a civil partnership, you can combine your IHT thresholds, effectively doubling your tax-free allowance.
If you’re leaving your home to your direct descendants, your IHT threshold can increase to £425,000 for individuals or £1,000,000 for couples (depending on the value of your estate). So, life insurance policies written in trust can either cover the estate’s IHT bill or be passed on tax-free to your beneficiaries.
How Sports Financial Services Helps You Reduce Inheritance Tax
At Sports Financial Services, we understand that recent changes to inheritance tax reliefs have created uncertainty and additional tax burdens. For example, in the autumn budget, the Chancellor announced that, from April 2026, inheritance tax reliefs on agricultural assets will be limited. Agricultural assets over £1 million (or up to £3 million in certain cases) will be subject to IHT, which could significantly impact landowners. These changes will make it more difficult for farmers to pass on their land and assets to future generations without facing substantial tax liabilities.
With the potential for increased IHT costs, it’s more important than ever to engage in proactive financial planning. You should look at how you manage you manage your IHT liability to navigate these changes. By incorporating life insurance policies written into trust, we can help reduce the impact of inheritance tax, ensuring that your family can move forward without being burdened by hefty tax bills.
Why Choose Sports Financial Services?
With over 20 years of experience, we pride ourselves on offering a personalised service that ensures you get the cover that’s right for you. Our expert advisers will help guide you through the process of taking out life insurance, ensuring you understand your options and make the best choices for your future.
Here’s why our clients trust us:
- Expertise: With two decades in the industry, we know how to help you navigate the complexities of life insurance.
- Personalised Service: We take the time to understand your unique needs, offering tailored advice that gives you peace of mind.
- Competitive Rates: By partnering with a range of leading providers, we ensure you get the best value for your financial protection.
Get Your Free Quote Today
Don’t leave your inheritance to chance. Protect your estate and ensure your loved ones are taken care of by getting the right life insurance policy in place. Use the form below to get your free quote today or give us a call at 0345 565 0935 to speak with one of our expert life insurance advisers.
Get a no-obligation quoteSports Financial Services offers Life Insurance, Critical Illness Cover and Income Protection for sports, hazardous occupations, those with ill health and those requiring general cover. Sports Financial Services is an appointed representative of Suttons Independent Financial Advisers which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales. Registered No. 493197.
For financial and inheritance planning advice please contact a specialist adviser at Suttons Independent Financial Advisers
Alternatively, speak to a specialist financial adviser at Suttons Independent Financial Advisers today on 0161 969 1703
Suttons Independent Financial Advisors Ltd is authorised and regulated by the Financial Conduct Authority, FCA number 455848.Registered in England, No. 5837639
Registered Office: Trinity House, 114 Northenden Road, Sale, Cheshire, M33 3HD