Section 73 Savings Policies

A Section 73 policy is a monthly Savings / Investment Policy that an Individual or Couple can set up in order to reduce Gift Tax (currently 33%) in the future.

After 8 Years of regular contributions, the policy becomes ‘tax-efficient’ and the policy proceeds can be gifted to a third party tax-free as long as there is gift tax payable in the same 12-month period with that same beneficiary.

There are certain conditions (imposed by Revenue) to be met in order for the Policy to qualify as being subject to Section 73 Status.

A Section 73 policy can be seen also as a normal savings / investment policy; there is no obligation on the Policyholders to use the policy for Section 73 purposes. In this way, this type of policy can be seen as having a dual-purpose:

• Phasing Funds into the market on a monthly basis

• Having the option (without the obligation) to use the policy for Section 73 purposes after 8 years