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Inheritance insurance
An inheritance policy is a death benefit policy that financially enables your surviving dependents to pay the required inheritance tax when you die.
Why take out an inheritance policy?
If you leave significant personal assets to your heirs, this may unfortunately also means sky-high inheritance tax for them. In order to avoid your surviving relatives having to give up a large part of their inheritance for this reason, it’s best to take out an inheritance policy. This ensures that your heirs will receive a capital that will enable them to pay the inheritance tax when you pass away.
After all, you have to pay this inheritance tax before you receive your inheritance. Unfortunately, this tax can be quite high, and your next of kin are required to pay within six months of your passing away. This is a very short period in which to bring together what can be a very large sum of money. And then you can only hope that your heirs have enough money to pay it. If you take out an inheritance policy, you will enable them to handle the inheritance tax without any problems, or without them having to sell some of their property, for example.