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21/09/2023 | Fonte: REVISTA APÓLICE

With an increase in the ITCMD, life insurance is an alternative for planning inheritance

Product stands out as a flexible and effective tool to protect assets and strategically plan inheritance

The desire for Tax Reform requires increased attention. A topic of profound relevance to society, it generates timely discussions that leave the necessary adjustments to the project approved in the Chamber in the hands of the Federal Senate. Citizens are left to monitor, when possible, resorting to representation by requesting changes or seeking alternatives, especially for changes that could bring harm.

And in view of so many works in this Reform, one of them stands out in the eyes of those who have assets: the increase in the rates of the ITCMD (Tax on Transmission Causa Mortis and Donation), which affects the transfer of assets and inheritances – and will directly impact planning financial situation of Brazilian families.

In this context, life insurance appears as an intelligent alternative to protect assets and plan inheritance more efficiently, while heated discussions in the Senate take place, with the promise that the reform will be voted on this year.

Three points of attention

One of the most relevant issues in Brazil’s political and economic scenario, Tax Reform impacts succession planning in three points that deserve attention:

The first of these refers to the mandatory forecast of ITCMD progressivity now for all States, which means an increase in the percentage for many of them. The maximum rate (8%) will continue to be set by the Federal Senate, but Senate Resolution Project 57/19 provides for an increase in the maximum rate to 16%, that is, double. It is worth remembering that in 2022 a proposal was circulated to create an additional ITCMD of up to 27.5%, under the Union’s jurisdiction (PEC 96/15). Therefore, it is not yet possible to know what the increase incorporated by the Senate will look like.

Another important point is the change in the jurisdiction of the ITCMD-cause of death to the State of the deceased’s domicile. And, finally, the possibility of taxation of amounts received from abroad, a situation previously not authorized by legislation, is another point of attention. This will still depend on its own regulation, if the text is approved.

Less costly succession planning

Faced with this scenario, many Brazilians are looking for alternatives to protect their loved ones and ensure that the transfer of assets is carried out in a more efficient and economical way. Life insurance has emerged as an important tool in succession planning.

“Life insurance has attracted new attention since the changes to the ITCMD, proposed in the Tax Reform, began to have the spotlight turned on them. And this is a real concern, since, in general, those who are going to leave an inheritance have worked their entire lives for it and now find themselves facing an uncertain scenario, where the taxes are not even defined”, comments Thiago Carvalho, specialist in property insurance. life.

When it comes to inheritance planning, this alternative brings considerable benefits. “Life insurance beneficiaries are not subject to paying the ITCMD, making it an attractive option for transferring assets in a more economical way”, explains Carvalho.

Other points are the quick payment of life insurance, in the event of the insured’s death, providing beneficiaries with quick access to resources to meet their immediate financial needs; Flexibility in choosing life insurance beneficiaries, allowing resources to be directed according to the insured’s wishes and needs; and financial protection in life, covering medical, educational and other important expenses.

How to Start Estate Planning with Life Insurance

According to the expert, to start succession planning using life insurance, it is essential to follow some steps, starting with the assessment of needs, that is, determining the amount necessary to guarantee the financial well-being of the beneficiaries and the payment of specific expenses, such as debts or taxes.

“This planning also involves choosing coverage, at which point it is necessary to understand the type of life insurance that best meets your needs, be it term, whole life, universal or variable; and the appointment of beneficiaries, taking into account their succession planning objectives, among other points, generally raised during the interview with the professional”, he highlights.

In times of tax uncertainty, life insurance stands out as a flexible and effective tool for protecting assets and planning inheritance strategically. By considering this alternative, families can ensure their loved ones receive the financial support they need while minimizing the impacts of potential tax changes.

Revista Apólice


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