Bri and Katee

We have heard about something called cross party insurance policies that cover for inheritance tax.

Apparently if one of you dies it pays out to take care of any inheritance tax on the property? Can somemone explain further? Is it just an ordinary life cover? How do you know how much you need to cover the inheritance tax? Is it half the value of the property or more that you need to cover? Any idea how much this sort of thing would cost? Who provides it?

Lots of questions I know, just hope someone has the answers

Mitzyboy

Well an ordinary life assurance is the same. If it's insured on for instance the husband and pays out the wife then it does the same thing.

I have the wife insured with a company on the UK, but I did this before I left the UK.

EsuriJohn

Perhaps the "cross party" is taken out on the couple and pays out on the first death whichever that might be.

Mitzyboy

what happens on the second death then?

leighbloke

Are you talking about UK IHT? as if everything passes to a surviving spouse there is no tax to pay - IHT would generally only apply on the second death and who cares then?

Mitzyboy

Think its Spanish IHT under which we're all stuffed royally

leighbloke

Well ignore me then.

Mitzyboy

Who said that

Bri and Katee

Yes it would be Spanish IHT. Just thinking to the future, don't want either of us to me made homeless should either of us shuffle of this mortal coil earlier than expected!

jdr

There is paperwork to get over it, I have seen the ads in Surinenglish.

EsuriJohn

Hi jdr,

Any idea what this is. We don't get Sur and would be interested in how this works and if it also applied to children of deceased.

In UK if you as the inheritor cannot afford to pay the tax on a property that you have inherited by arrangement the Tax Collector will allow you to sell the asset to pay the Tax due, is it something along those lines?

Regards,

John.

leighbloke

Well what were you going to do to get round it if you both live as long "as expected" (I'm guessing you're not in a suicide pact here)

Can you not just do that now??

jdr

Just had a look in this weeks and last weeks but can`t find it, if i see it again I will contact you.

big wheels

As I understand the laws in Spain. Property can't be sold in order to pay inheritance tax.

One way round it is to see a specialist financial advisor based in Spain. I can personally recommend
the firm who usually have a full page ad advising on all tax/investment matters in most free English papers.
Depending on your wealth and circumstances they could be able to set you up with a trust fund in order to avoid paying Spanish inheritance tax altogether.

It may be classed as advertising if I were to mention them here by name, but if anyone would like their contact details to arrange a free consultation, send me a pm.

jdr

Thats the one I was looking for. ;-)