We must take into account that upon the death of a policy-holder, the estate is subject to inheritance taxes that may reduce the total value of assets. Estate planning is a method specifically designed to reduce the impact of a potential tax burden. Some of the taxes that must be taken into account are:These taxes are just a few examples. Each jurisdiction and each country have unique taxation structures regulating the entire succession process.
- Estate Taxes: Taxes applied to the estate itself, which are applied at the time of death of the asset holder. The amount of tax is based on the price a buyer would pay for assets during the succession process.
- Inheritance Taxes: A tax for portions of the estate distributed to each of the beneficiaries.
- Transfer Taxes: All property transfers, whether as gifts or upon death of the owner of said property, or while the owner is still alive; are subject to this type of tax.