Estate Planning

Financial protection for the US UK family

At Vie International, we specialise in sourcing high-value life insurance solutions for our US connected clientele. We match policy design to your family or business needs.

Our dually US UK qualified advisors assess both US and UK markets to deliver both customised and optimal tax efficient planning solutions for wealth protection. Our advice is wholly independent with regulated and authorised access to both the UK and the US insurance markets. We know of no other independent UK US dually regulated life insurance broker in London.

Why use life insurance?

Life insurance is a wealth protection vehicle used to secure a lump sum to support a surviving family, an organisation continuing to trade or to pay Inheritance Tax [IHT] to HMRC within its 6-month payment deadline.

Payouts provide liquidity and certainty, mitigating the need to sell family or business assets to pay IHT. The provision of life insurance allows full retention and use of assets during a lifetime.

An aleatory contract ‘…an unequal exchange based on chance.’

Life insurance provides a valuable lump-sum benefit for international families who have complex needs for liquidity and succession planning.

Life insurance protection is an excellent alternative to gifting assets, which can lead to a loss of use.

Vie International’s solutions are tax efficient with guaranteed payouts, creating a low risk, diversified asset class in US dollars with competitive IRRs.

Estate and gift tax exemption v Inheritance Tax

Our clients are most likely to take out life insurance to mitigate inheritance tax exposure.

In the UK, IHT applies at 40% of assets over the Nil Rate Band of £325k per person after any other available reliefs. For international clients who are UK resident, the long-term residency rules implemented on 6 April 2025 means those who have been living in the UK for 10 out of the previous 20 years are now subject to HMRC’s IHT charge on their global assets. Compared to the US’s Estate and Gift Tax Exemption, currently set at USD 15m per US person, we help clients address this substantial IHT exposure by structuring life insurance to pay out the estimated IHT liability.

Inheritance Tax changes in the UK

From 6 April 2026, business ownership is now included in the estate for UK IHT purposes. Business Relief and transfers to a spouse or civil partners are available allowances to reduce or delay IHT payments.  However, ownership of businesses valued at £5m or more at the time an owner passes away are now subject to IHT.

From 6 April 2027, pensions will no longer fall outside a taxable estate and so IHT exposure will be further increased. For those surviving over age 75, their beneficiaries are likely to be subject to both IHT and income tax to access the remaining pension assets.

A plan to pay

Most families assume their estate will be paid in time. HMRC’s 6-month IHT deadline arrives quickly and even substantial wealth can be difficult to access at short notice.

Wealth protection strategies are designed to do two things at once:

• allow for the full use and control of assets during a lifetime
• plan so that when the need arises, the financial burden for those left behind is already managed

For many families, wealth can be illiquid, for example, tied up in property, business interests or investments that cannot easily be made available.

A well-structured life insurance policy changes that. It provides funds as they are needed, without disrupting the assets the family has spent a lifetime building.

Our experience of claims gives us and our clients an additional layer of confidence.

US insurers typically settle claims within 3 months. For claims that take longer than 60 days, interest is paid to the policyholder. In the UK, for our UK long-term resident clients, HMRC requires IHT to be settled within 6 months of the passing away of the second spouse. Life insurance allows a comfortable margin to meet this deadline.

‘At Vie International, we support families to meet their UK tax obligations before reaching HMRC’s 6-month deadline. We ensure that what you have built is passed on as intended, with tax obligations thoughtfully anticipated.’

If you would like to learn more about exploring life insurance as a solution for estate planning, contact Vie International for an initial meeting with a cross-border life insurance professional.