Sale of property or life insurance? – Financing the inheritance process that the Polish market has not known so far!
Only thirteen out of a hundred Poles over 50 wrote a will. This is the result of the Kantar Milward Brown poll, conducted for the first time in history in cooperation with the Open Forum Foundation. So what does the readiness of Poles look like to transfer the property and secure the achievements of their lives?
Piotr Staniszkis will talk about the process of inheritance and its financing in the aspect of Polish inheritance and tax law and the participation of an insurance advisor in it. Trainer, consultant and mentor cooperating with EOFWCA.pl.
According to the data of the nationwide campaign “Write a testament” conducted by the Open Forum Foundation, it follows that More and more young people Leading active life, traveling, having a mortgage, raising children, starting families in partnerships or a patchwork model, running a business He comes to the notary to secure his belongings. Increasingly, the preparation of a will is an element of managing your property. Apart from saving or investing, Poles, taking care of finances, plan how their property can be distributed. Such a change of trend is very important information for insurance agents – says Piotr Staniszkis.
Until recently, there was a belief in society that only the elderly, seriously ill or very wealthy people should write a will. Meanwhile, everyone has assets in the form of savings, real estate, and intellectual achievements. So let’s take care of how it will be distributed. The very preparation of a will is quite simple, although the help of an attorney or notary support may be necessary. However, this is not enough. It is necessary to plan and implement its financing. The task is not easy and the participation of an insurance advisor is very advisable.
Thanks to the knowledge of the principles of statutory inheritance, testamentary inheritance, the idea of a reserved share and inheritance and donation tax, as well as the analysis of the existing collateral, the insurance advisor can actually advise appropriate financial solutions. Life insurance allows you to provide funds to bear the costs related to the inheritance process and the maintenance of property in the family. And how to properly structure a life policy? Innovative concepts of financing the inheritance process, previously unknown on the Polish market open up new horizons and allow reaching undeveloped market segments.
How does it work in practice?
If the owner of the property and the future testator do not make a will, then the provisions of Book 4 of the Civil Code – inheritance, Title II, decide on the principles of inheriting the entire property. statutory inheritance & nbsp; (Act of April 23, 1964 as amended – Civil Code). & nbsp; The statutory order of inheritance may be changed by the testament left by the testator. This is currently the only method by which you can effectively dispose of your property in the event of death, if you do not like the order of statutory inheritance. If the testator decides to write down the last will, he can allocate the property to whomever he wants – without any restrictions. In such a situation, pay attention to the right called the reserved share. It is to protect the testator’s closest relatives, who would be appointed to inheritance from the provisions of the Act, and who were omitted in the will. They are descendants, spouse and parents of the testator. Thus, these persons may demand a certain amount of money from the person appointed instead of them to inherit a certain amount of inheritance, and it is a kind of substitute for inheritance that would be due to them in the event of statutory inheritance. Here are the opportunities for an insurance advisor. Life insurance is the best solution to finance this type of expense.
In addition to the reserved share, in connection with inheritance, the inheritance tax is due, the amount of which depends on belonging to a specific tax group and which may amount to approx. 7%, 12% or even 20%!
How to effectively finance this expense? A sale of assets, liquidation of deposits, realization of shares or liquidation of a fund, a loan from a bank or other such financing method are not as effective as life insurance. Why? Almost every customer asks these questions. The answer is obvious, the cost of life insurance is much lower than the cost of other sources of financing – adds Piotr.
balancing inheritance, maximization of inheritance mass, repayment of inheritance and donation tax and reserved share, financing of the succession board and the succession of sole proprietorship as well as the guaranteed retirement of the entrepreneur are concepts supporting planning and financing inheritance process.
- Conceit balancing downhill
answers the question of how to divide the “future” mass of the inheritance equally between the heirs, so as to implement the testator’s assumptions on the one hand, at the same time causing the heirs to feel no harm.
- The concept of maximizing the inheritance mass
indicates the method of securing family assets against creditors. Especially when the testator is an entrepreneur who could guarantee the repayment of company loans also with his own property.
- The concept of repayment of the reserved share and inheritance tax
shows how to provide cash to heirs to pay inheritance tax to the tax office and to settle a reserved share due to those who would inherit by law and who were omitted in the will.
- Concept of financing the succession board and succession
On the one hand, a sole proprietorship shows the way how to finance the implementation of a key person for the company in the event of the entrepreneur’s death. On the other hand, it shows how to finance the repayment of relatives at the time of taking over the company’s ownership by the successor as a result of inheritance proceedings.
- Entrepreneur’s Guaranteed Retirement Concept
indicates the method of securing the retirement payment to the entrepreneur after the orderly takeover of the company by the successor during the life of that entrepreneur.
Such tools will allow the insurance advisor to properly secure the client’s needs and at the same time be a step ahead of the competition.
What should be the sum insured? With whom, when and how to talk about these topics and what arguments to use in order for the client to implement the proposed insurance solutions as soon as possible? Choose training to find out answers to these questions Family succession – Introduction to financing the inheritance process Conducted by Piotr Staniszkis as part of the project Certified online workshops in professional development (IDD) carried out by EOFWCA.pl
