CAT : section 72 life policy

[fistophobia]

Hi,

I am facing into an inheritance tax drama. I have discovered there is a section 72 policy in place.
To simplify it for me, its parent to one child (me). I know the threshold is 335K tax free, but how would this policy work?
We are talking a large enough estate value, and it would be above this number.
I really do not want to get into a skirmish with Revenue.

thanks

 

[Oisin19]

The policy is a whole of life insurance policy. ie on death a lump sum is paid to the beneficiaries. However if the lump sum is used to pay CAT the beneficiaries won't pay CAT on this lump sum.

If the policy isn't used to pay CAT it forms part of the estate and CAT will be due.