Section 72 cover: the inheritance tax paid, the estate kept whole

Revenue-approved life cover taken out to pay the tax your children will owe. Used for that bill, the payout carries no CAT of its own. A senior advisor sizes the cover in euro and compares the main Irish providers.

4.9 Google reviews 30,000+ clients CAT at 33% above €420,000 per child
Your pension options

Find out what your family would owe

Tell us roughly what you own and who it is for. A senior advisor is in touch with the likely tax bill and the cover that pays it.

  • No documents needed, ballpark figures are fine
  • One senior advisor for your area, not a call centre
  • Whole of market: every main Irish provider compared
30,000+clients across Ireland
4.9 Google rating
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Tax relief, contribution limits and the right plan differ between the three.

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What it is

Life cover with one job: paying the tax

A Section 72 policy is life cover set up under section 72 of the Capital Acquisitions Tax Consolidation Act 2003. You take it out on your own life, or with your spouse or civil partner on both your lives, and you pay the premiums.

When it pays out, the money used for the inheritance tax due on your estate is exempt from CAT and does not count towards your children's thresholds. Any money left over joins the estate and is taxed in the normal way.

  • In a form approved by Revenue
  • Pays inheritance tax arising within a year of death
  • Exempt from CAT when used for the tax
  • Can also pay the tax due on an approved retirement fund

What each child would owe

CAT at 33% on what each child inherits above the €420,000 Group A threshold, assuming no earlier gifts or inheritances.

Each child inheritsTaxable amountCAT due
€500,000€80,000€26,400
€600,000€180,000€59,400
€750,000€330,000€108,900
€1,000,000€580,000€191,400
Who it suits

For estates that are mostly a home, a farm or a business

The tax is paid in cash. If most of what you leave is a house, land or shares in a family company, your children may have to sell or borrow to pay it. Section 72 cover puts the cash there.

It also helps parents who want each child treated the same, where one takes the farm or the business.

  • Parents leaving more than €420,000 to a child
  • Couples, with cover paying on the second death
  • Owners of a family business, farm or rental property
  • Anyone leaving money to nieces, nephews or friends, where thresholds are lower
How it is set up

Whole of life cover, set up right from day one

Section 72 cover is usually whole of life cover, so it pays out whenever death comes, not only within a set term. Couples can choose joint life second death cover, which pays when the second of you dies. That matches the tax, since everything passing between spouses is exempt.

The policy must be written as a Section 72 policy from the start, and the cover must be at least eight times the yearly premium. Some providers guarantee the premium will not rise. New applicants are accepted up to age 74 with both Irish Life and Zurich.

  • Set up as Section 72 from the start
  • Single life, or joint life second death for couples
  • Cover of at least 8 times the yearly premium
  • Your will directs the payout to the tax

Premiums against the tax saved

Are the premiums worth it? Revenue's rules keep the cover at least eight times the yearly premium. Beyond that, it depends on how long you live, so we set the total premiums to age 85, 90 and 95 beside the tax the policy pays, in euro, from real quotes.

The payout arrives when the tax falls due, with no CAT on it when used for the bill. Paying the same tax from savings uses money that was taxed once already, and it may not be there on the day.

Families can share the cost. The premiums must be paid by you, but each child can give each parent €3,000 a year under the small gift exemption, and you can put that towards the premium.

Worked example: a couple leaving €1.4 million

Declan and Mary are both 62. Their home, a rental property and savings come to €1.4 million. Their wills leave everything to each other, then equally to their two children.

What the plan showed:

  • On the first death, everything passes to the survivor with no CAT.
  • On the second death, each child inherits €700,000. Above €420,000, €280,000 each is taxed at 33%: €92,400 each, €184,800 in all.
  • A joint life second death Section 72 policy for €185,000 pays that bill. Used for the tax, the payout carries no CAT.
  • As the estate grows, the cover can be changed within Revenue's rules. Any payout above the tax joins the estate and is taxed.

Figures assume no earlier gifts or inheritances in Group A and are illustrative.

What happens next

How it works

1

Tell us about the estate

What you own and who it is for. Two minutes on the form.

2

We work out the tax

Child by child, at today's thresholds, in euro.

3

We compare providers

Section 72 cover from the main Irish providers, including Irish Life, Zurich and Royal London Ireland.

4

You apply

With the health questions the provider needs, and our help with each one.

5

We line up the will

With your solicitor, so the payout goes to the tax.

6

We review the cover

As the estate grows and the thresholds change.

33%CAT above each child's threshold
€420,000Group A threshold from 7 October 2026
8xminimum cover against the yearly premium
1 yearwindow after death for the tax it covers
Google reviews

What clients say about their advisor.

Read all Google reviews
We (Richie and Nickey) received excellent pension advice that was clear, honest, and tailored to my situation. Everything was explained in a way we could easily understand, and we felt confident making decisions about my future. Highly professional service and very reassuring throughout the process.
RO
Richard O NeillPension advice
They made setting up a company pension on a deadline extremely easy and stress free. You can tell they understand the products inside out. Very approachable, great availability for support with instant and clear answers.
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Mairead KilbrideCompany pension
True Wealth was super efficient in locating my UK pension. They were very professional and responsive in dealing with the relevant pension organization. I would highly recommend True Wealth.
BW
Bridget WhooleyUK pension trace
Thank you for the several calls to advise me. Great client attention! Eimear is fantastic! I had my pension sorted and a few insurances arranged. All the best.
RD
Renan DevitaPension and protection
Excellent service. Always there if I had any questions, would recommend without hesitation. A 5 star service. Thank you everyone.
AH
Anthony HGeneral
Questions

Frequently asked questions

Straight answers with the figures. If yours is not here, a senior advisor answers it in your review.

How much does Section 72 cover cost?

It depends on your age, health, smoking status and the amount of cover. We get quotes from the main providers for your figures.

Is there an age limit?

Yes, set by each provider. Irish Life's whole of life cover is open from age 18 to 74 and Zurich's from 45 to 74, so starting before your mid seventies keeps your options open.

Can my children pay the premiums?

The premiums must be paid by you, the person insured. Your children can each give you up to €3,000 a year under the small gift exemption, which you can use towards the premium.

Can I convert my existing life cover?

No. A policy must be set up under Section 72 from the start. Existing cover cannot be turned into a Section 72 policy later.

Does it cover tax on a gift I make in my lifetime?

Not usually. That is what Section 73 is for, though some Section 72 policies with an early encashment option after eight years can qualify.

What happens if I change or stop the premiums?

If you stop paying, the cover ends. Some premium changes can cost the policy its Section 72 status for good, so talk to us first.

Sources

Checked 8 October 2026.

Warnings

Warning: The value of your investment may go down as well as up.

Warning: If you invest in this product you may lose some or all of the money you invest.

Make sure the tax is paid, not the estate

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