Q&As

Does the value of an insurance bond (life policy) owned by the deceased and assured on the deceased’s children’s lives form part of the deceased’s estate for inheritance tax purposes?

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Published on LexisPSL on 09/03/2018

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • Does the value of an insurance bond (life policy) owned by the deceased and assured on the deceased’s children’s lives form part of the deceased’s estate for inheritance tax purposes?

Does the value of an insurance bond (life policy) owned by the deceased and assured on the deceased’s children’s lives form part of the deceased’s estate for inheritance tax purposes?

When considering the following issues, the following resources may be of assistance:

  1. the insurance bond pays out on the death of D’s two children and therefore is life assurance policy on the children’s lives. There will be no chargeable event on D’s death

  2. to determine the correct tax treatment, it will be important to consider whether the insurance bond is written into trust (see Practice Note: Creation of trusts—life insurance trusts and Trusts—inheritance tax—overview). Given that the Q&A states that D owns the policy,

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