Businessman Steve Perez is investing a significant sum to safeguard his company’s future, even after he is no longer at the helm. The 68-year-old owner of a drinks and hotel chain situated in northern England is prepared to allocate £100,000 (approximately $130,000) annually for a life insurance policy. This financial arrangement is intended to cover the projected £10 million inheritance tax that his heirs will be responsible for, should he pass away within the next ten years.
The life insurance premiums, funded by dividends from his company, will offset a tax liability that Perez believes could jeopardize the firm’s continued operation. This proactive approach to estate planning is becoming more common among business owners.
