Private ClientInsurance
Tailored Life Insurance for Estate Planning, Lifetime Gifting and Inheritance Tax liabilities
Inheritance Tax Cover
Protect substantial lifetime gifts with insurance policies designed to correlate with the 7-year taper relief rule
Joint Life Policy
Can be used to pay an inheritance tax liability which would arise on the second death, of a married couple
Whole Life Cover Insurance
A guaranteed payout on death, available on a single or joint life basis to fund an established inheritance tax liability
Please note: Henry Dannell is an insurance intermediary. We offer whole-of-market access to insurers based on a fair and personal analysis of the market. Tax treatment depends on individual circumstances and may change. Inheritance Tax planning, trust planning and will writing are not regulated by the Financial Conduct Authority.
Life Cover
Inheritance Tax Cover
Protection For Lifetime Gifts
When making a significant lifetime gift out of your estate, this can be classed as a Potentially Exempt Transfer, with an associated inheritance tax liability if the donor dies within a certain period of time after the gift is made. This can result in the beneficiary, the recipient of the gift, facing a significant tax bill.
Life insurance remains a cost-effective solution to cover the potential tax exposure from a failed PET. The cover is usually arranged to align with the period of the liability once the gift has been made and reduces in line with any allowable taper reliefs.
This type of cover is particularly relevant for clients who want to pass wealth to children, grandchildren or other beneficiaries during their lifetime, while reducing the risk that the recipient is left with an unexpected tax bill.
This may be suitable for clients who are:
- making substantial gifts to family members;
- transferring property or other assets during their lifetime;
- in discussion with children and or grandchildren with regards to wealth, property or planning needs;
- concerned about the seven-year survival period;
- seeking reassurance that a gift will not create a financial burden for the recipient.
Joint Life Policy
Insurance Designed Around The Point At Which IHT Is Likely To Become Payable
For married couples and civil partners, Inheritance Tax is often not payable on the first death where assets pass to the surviving spouse or civil partner. The liability may instead arise on the second death, when assets pass to the next generation or other beneficiaries.
A joint life second death policy will pay a lump sum upon death of the second policyholder. Beneficiaries or trustees can then use the proceeds to help meet an anticipated IHT liability.
This can be an effective option when there is a known or expected estate liability, particularly where wealth is tied up in property, private company shares, investment portfolios or other assets that may not be easy to liquidate.
This may be suitable for clients who are:
- have an estate likely to exceed available IHT allowances;
- are married or in a civil partnership and expect the IHT liability to arise on second death;
- want to provide beneficiaries with liquidity to meet tax due;
- wish to reduce the risk of family assets being sold under pressure;
- need cover to sit alongside advice from their tax, legal or wealth advisers.
Whole of Life Insurance
Long-Term Life Insurance For Estates With An Enduring IHT Exposure
Whole of life cover is designed to remain in place for the rest of the insured person’s life, provided premiums continue to be paid. Unlike term assurance, which runs for a fixed period, whole of life cover will provide a guaranteed lump sum whenever death occurs.
For private clients with an ongoing IHT exposure, whole of life insurance helps create a dedicated fund for beneficiaries or trustees to use when settling tax due on the estate. Where appropriate, the policy may be written in trust so that the proceeds are paid outside the estate and can be accessed more efficiently by the intended beneficiaries.
Whole of life cover is often considered where gifting alone is not appropriate, where assets are retained for income or lifestyle reasons, or where the estate includes illiquid assets such as property, land or business interests.
This may be suitable for clients who are:
- have a long-term IHT liability that is unlikely to be removed through gifting alone;
- own high-value residential, investment or commercial property;
- want to preserve family wealth for the next generation;
- need a policy that is not limited to a fixed term;
- want the cover to form part of a wider estate planning discussion.
Please note: It is important to remember that the decision regarding the tax treatment of key person cover ultimately rests with the local Inspector of Taxes.
Why Private Clients Choose Henry Dannell
Specialist Protection Advice
High-value protection cases often require more than a standard online quotation. Medical history, age, residency, occupation, assets, gifting arrangements and policy ownership can all affect the most suitable structure and the terms offered by insurers.
Our advisers understand the underwriting and planning considerations that can arise when arranging larger or more complex life insurance policies.
Access To A Range Of Insurers
We work with a range of insurers and specialist providers, allowing us to source cover based on your circumstances, objectives and underwriting profile.
Coordination With Your Existing Advisers
Private client insurance is most effective when it complements wider tax, legal and financial planning. Where appropriate, we can liaise with your solicitor, accountant, wealth manager, family office or tax adviser to help ensure the policy is considered within the broader estate planning framework.
Clear Structuring and Trust Considerations
How a policy is owned can be as important as the cover itself. We can explain the protection considerations around writing a policy in trust and work alongside legal or tax advisers where trust planning advice is required.
A Premium, Personal Service
We take a considered approach to private client protection, from initial discussion through underwriting, policy placement and ongoing review.
How Private Client Insurance Can Support Estate Planning
Life insurance does not remove the underlying tax liability. Instead, it can provide a practical source of funds to help beneficiaries meet that liability when it arises.
For many families, this can help avoid difficult decisions at a sensitive time. Without suitable liquidity, beneficiaries may need to sell property, investment assets or family business interests to meet tax due. A well-structured policy can provide greater certainty, helping preserve the estate and reduce financial disruption.
Private client insurance may be particularly useful where:
• lifetime gifts have been made and the seven-year period has not yet passed;
• there is a known IHT liability on the estate;
• family wealth is concentrated in property or other illiquid assets;
• assets are intended to remain within the family;
• beneficiaries may not have immediate access to funds;
• existing estate planning needs to be supported by a dedicated insurance solution.
Our Process
Initial Consultation
We begin by understanding your objectives, family circumstances, estate position and any existing planning already in place.
Insurance Needs Assessment
We consider the type of liability or exposure being protected, whether this relates to lifetime gifting, an existing IHT liability, or a longer-term estate planning requirement.
Market Research and Underwriting Strategy
We approach suitable insurers and specialist providers, taking into account underwriting, policy structure, affordability and your intended planning outcome.
Policy Structure
Where relevant, we discuss policy ownership, single or joint life cover, second death planning, trust considerations and how the policy may interact with your wider estate planning.
Application and Implementation
We manage the application process, help coordinate medical or financial underwriting requirements, and keep you informed throughout.
Ongoing Review
Private client circumstances can change over time. We can review cover as your estate, family arrangements, gifting strategy or legislation evolves.
Speak To A Private Client Insurance Adviser
Whether you are making a substantial lifetime gift, planning for an existing IHT liability, or looking to preserve more of your estate for the next generation, Henry Dannell can help you explore suitable insurance options.
Please note: It is important to remember that the decision regarding the tax treatment of key person cover ultimately rests with the local Inspector of Taxes.
Frequently Asked Questions
Potentially Exempt Transfer Insurance is life insurance designed to cover the potential Inheritance Tax liability that may arise if someone dies within seven years of making a Potentially Exempt Transfer. It is often arranged in a Gift Inter Vivos-style structure, where the cover reflects the potential IHT exposure during the seven-year period.
It is often popular with clients making substantial lifetime gifts because it addresses a clear and time-limited risk. The client has made the gift, but the IHT position may not be fully settled until seven years have passed. Insurance can help protect the beneficiary from a potential liability if the donor dies during that period.
Not always. Traditional Gift Inter Vivos-style cover often reduces in line with taper relief, but the appropriate structure depends on the value of the gift, available nil-rate band, previous gifts, the wider estate and whether taper relief is expected to apply. In some cases, level cover or a different structure may be more appropriate.
Joint life second death cover insures two lives and pays out when the second person dies. It is commonly used by married couples or civil partners where the IHT liability is expected to arise on second death rather than first death.
Term insurance runs for a fixed period. Whole of life cover is designed to remain in force for life, provided premiums are maintained. For estates with an enduring IHT exposure, whole of life cover can provide a guaranteed lump sum whenever death occurs.
Many IHT-focused life insurance policies are considered for trust ownership so that the proceeds are paid outside the estate and can be accessed by the intended beneficiaries or trustees. Trusts can be complex, and Henry Dannell does not provide legal or tax advice. We can work alongside your professional advisers when trust planning is required.
Life insurance does not usually reduce the underlying IHT liability. Its purpose is to provide funds that can help meet the liability. The structure of the policy, including whether it is written in trust, is important and should be reviewed carefully.
Yes. For private client cases, we can work alongside solicitors, accountants, wealth managers, family offices and tax specialists to help ensure the insurance arrangement supports the wider planning objective.