ASSET TAX STRATEGIES
Capital Acquisitions Tax Relief (Section 73)
Ensure a Smooth Wealth Transfer with Strategic Planning
When reviewing your financial plan, considering how to pass on your wealth to the next generation is a significant and meaningful step. At Prosperous, we specialise in crafting bespoke strategies to help you achieve your unique goals while creating a comprehensive plan for transferring your wealth. Our tailored approach starts with understanding your priorities and family dynamics, ensuring your financial plan maximises the value of your wealth for you and your loved ones.
The best way to reduce the inheritance tax bill your next of kin are going to pay is to spend all your money on yourself before you die! Enjoy your money during your lifetime and take advantage of opportunities like the Small Gift Exemption to pass on wealth while witnessing your loved ones benefit from it. A Section 73 policy might be a key component of this overall strategy, helping you optimise your estate plan and preserve your family’s financial future.
Section 73 of the Capital Acquisitions Tax (CAT) Relief offers an effective strategy to address this challenge. It allows you to fund the tax liability on gifts or inheritances, ensuring your beneficiaries are protected from unexpected financial burdens.
Discover how Prosperous can help you create a lasting legacy while minimising tax liabilities for your loved ones. Let’s plan together for a smooth and meaningful wealth transfer.
What we offer...
Personalised CAT Relief Solutions
Your estate and family dynamics are unique, and so are your legacy goals. At Prosperous, we specialise in crafting bespoke Capital Acquisitions Tax (CAT) relief strategies tailored to your individual circumstances. Our advisors carefully evaluate your assets, potential tax obligations, personal goals and family priorities to create a plan that maximises the value of your estate while minimising CAT liabilities.
Section 73 Life Insurance Policies
Section 73 policies are designed to specifically address CAT liabilities, providing a practical solution for safeguarding your beneficiaries' inheritance. Our team will evaluate whether a Section 73 policy aligns with your personal goals and family priorities. If it’s the right fit, we’ll guide you in selecting and structuring a life insurance policy that meets Section 73 requirements. This ensures that any CAT due on gifts or inheritances is effectively covered, preserving the full value of your estate for your loved ones.
Holistic Estate Planning
Strategic CAT relief is most impactful when integrated into a holistic estate plan. At Prosperous, we combine Section 73 planning with other wealth transfer strategies, such as the Small Gift Exemption, to create a seamless, tax-efficient estate plan. Our goal is to preserve your family’s financial future while ensuring your wealth is passed on smoothly and in line with your wishes.
Our Capital Acquisitions Tax Relief Process
Initial Consultation
We begin by understanding your estate’s value, family dynamics, and goals for wealth transfer. This consultation allows us to identify potential tax liabilities and create a tailored CAT relief plan that suits your needs.
Policy Selection & Tax Strategy
Once we’ve assessed your estate’s CAT liabilities, we’ll determine if a Section 73 life insurance policy aligns with your goals. If you choose to proceed, we’ll identify and structure a policy tailored to meet your specific needs. Our focus is to provide financial security for your family while ensuring your estate is preserved and passed on as intended.
Comprehensive Estate Integration
CAT relief planning is most effective when it aligns with your overall estate plan. We ensure that your Section 73 policy complements other financial protections, supporting a smooth and tax-efficient transfer of wealth.
Ongoing Review & Adjustments
Tax laws, estate values, and family situations may change over time, so we provide regular reviews to ensure your CAT relief plan remains aligned with your goals and current regulations.
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Frequently Asked Questions
Section 73 policies are life insurance policies that cover CAT liabilities on gifts or inheritances, helping your beneficiaries avoid financial strain. We’ll help you select the right policy for your estate.
Anyone with a taxable estate or significant assets can benefit from CAT relief. We’ll assess your estate and advise on the best approach for minimising tax liabilities.
Section 73 policies are designed to fund CAT liabilities, fitting seamlessly into your broader estate strategy. We’ll integrate it with your legacy goals to ensure your wealth transfer is tax-efficient.
Yes, regular reviews allow us to adjust your policy as your estate value or tax laws evolve. We’ll ensure your CAT relief plan remains relevant and effective.
Prosperous Financial Planning Limited is authorised under Regulation 30 of the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 to engage in the business of being a Mortgage Credit Intermediary on behalf of the following undertaking(s): Finance Ireland Credit Solutions DAC t/a Finance Ireland, Avantcard DAC t/a Avant Money, Haven Mortgages Ltd, Dilosk t/a ICS Mortgages