Bergenia crassifolia (L.) Fritsch--Pharmacology and phytochemistry by Shikov, Alexander N.; Pozharitskaya, Olga N.; Makarova, Marina N.; Makarov, Valery G.; Wagner, Hilde / Phytomedicine: International Journal of Phytotherapy & Phytopharmacology.
The insurance policy gets to grow tax free, so that when you die there is enough in the policy to pay the estate taxes. For example: You have a $20 million estate. When you die, this estate will pay $11 million in estate taxes, leaving your kids with a net of $9 million.Therefore, to fight this: You spend $5 million on life insurance. The life insurance grows tax-free from $5 million to $20 million.ow your estate is worth $35 million (your $20 million estate, less the $5 million premium, plus the $20 million payout). You now pay $19 million in estate taxes, which means that your kids net $16 million -- a full $7 million ahead of where you would have been if you hadn't bought any life insurance at all!
What you pay Inheritance Tax on. You pay Inheritance Tax on ârelevant propertyâ - assets like money, shares, houses or land. This includes the assets in most trusts. There are some occasions where you may not have to pay Inheritance Tax-for example where the trust contains excluded property.f the deceased transferred assets into a trust before they died. If youâre valuing the estate of someone who has died, youâll need to find out whether they made any transfers in the 7 years before they died. If they did, and they paid 20% Inheritance Tax, youâll need to pay an extra 20% from the estate.