Section 72

We have taken out a section 72 (worth €150k and costing €240pm)to cover potential inheritance tax that our two children may face. My question of is it worth retaining the policy given that from my calculatons the tax due if our assets were realised at the moment, would come to €224k. We are concerned that with an increase in property prices this could lead to the policy not meeting most of the tax due in years to come.
We are both in our mid 60s.
We have a rental property worth about €200k that we are considering selling in order to reduce the inheritance tax to a figure nearer to the 150k. I realise there will be a CGT for us to pay but perhaps it is worth doing this and then transferring the proceeds over the years to our children under the allowable €6k per year each.

Is there a more tax efficient way of doing this.
Thanks in advance

Most people who inherit don't have any of their tax bill covered, so I wouldn't be overly concerned with you not meeting all of your children's tax bill. They are getting €150k of it covered by you already.

If you are in good health, it may be another 20 years before your adult children get any of this inheritance and they may closer to your age. They should have found their won way in life at that stage and have their own provision for retirement at that stage. Look after yourself first and ensure you have enough money to enjoy your own life before routine and comfort is more attractive than going out and doing lots of things.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)