CLA Succession Insurance

Current UK laws mean that if you die within a seven-year period after gifting, your assets could be liable to inheritance tax. CLA Succession Insurance, provided by 1Edge Insurance, has been set up to offer CLA farming and landowning members with an affordable, tailored solution to protect against inheritance tax risk when making a lifetime gift

As busy landowners and farmers, we have ensured that you can easily access insurance options which may suit your needs and address your concerns.

CLA Succession Insurance helps to protect against inheritance tax liability after gifting. If you die within seven years – the window before gifts become tax free – the policy pays a cash sum to your family to help meet any inheritance tax that might be payable.

The online CLA Succession Insurance product is available to any farmers aged 18-75.

We can also explore insurance options for anyone 75+ or with complex succession arrangements already in place. Please bear in mind these are subject to larger premium costs.

Unlike standard life insurance, this policy is tailored to the unique needs of farming and landowning businesses. It keeps costs down because it only focuses on the seven years after gifting – the period you’re liable.

CLA Succession Insurance offers a policy giving tiered seven-year cover.

• Provides fast, fuss-free cover through an online portal.
• Helps keep insurance costs down, as it only covers you for the seven-year period.
• Asks a series of basic eligibility questions – no medical underwriting needed.

Your level of protection increases across the seven years.

• Year one: accidental death only – you’re covered only when the cause of death is accidental. For example, vehicle accidents or machinery incidents.
• Year two: accidental death, plus instant event cover – in the second year, your cover extends to include instant events like stroke and heart attack.
• Years three to seven: full life cover – for the final five years, your policy extends to full life, covering accident, instant event, illness, natural causes and more.

The policy covers you for a sum that’s aligned to your potential inheritance tax liability, after any allowances and reliefs.

It has been set up to make the claims journey as efficient as possible – easing probate delays and disruptions to your family business.

We have arranged protection for a five-year-old child who is part of a family's long-term succession plan. The cover needs to remain in place until they reach adulthood, creating a very different challenge.

There have also been enquiries from members that have already made their gifts, and some have made more than one gift at different times.

For the first two years, cover is limited to accidental death (years 1 and 2) and instant event causes (year 2 only). No benefit is paid for other causes during this time. This may not suit all needs, full cover from day one will be available with a new product which is due to launch shortly. Please contact us if you believe this would be better suited to your circumstances and we will send you details once this has launched.

If you would like to find out more about the succession insurance options available to you, please contact the CLA Succession Insurance team today.

T: +44 20 4614 0100

E: cla-succession-insurance@cla.org.uk

The products offered within the CLA Member Services programme are provided by the suppliers mentioned above and not by the CLA itself. CLA merely acts as an introducer.

The CLA has exercised reasonable care in selecting the suppliers, taking account of a range of matters, which might include product range, pricing and/or service levels, depending on the service in question.

However, the CLA cannot and does not give any guarantee or accept any responsibility to members as to the value for money or suitability of any particular product. It is the member’s decision whether to select the product, after having taken professional advice if necessary.

Members should note that the CLA may receive commission or other payments from suppliers in respect of their status as “preferred suppliers” and/or in respect of products sold to CLA members.

By using CLA Member Services, members agree that the CLA may retain all such payments. Details of such payments will be provided in respect of particular products, or on request.

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The CLA (Country Land and Business Association Limited) is an Introducer Appointed Representative of 1Edge Insurance PCC Limited, which is authorised and regulated by the Financial Conduct Authority No. 943286, and registered in England and Wales under company registration number 09073942, with its registered office at Seventh Floor, 77 Cornhill, London, EC3V 3QQ. The CLA is registered in England and Wales under company registration number 6131587. Registered Office: 16 Belgrave Square, London SW1X 8PQ.