Life insurance policies play an important part in:
Wills and estate planning
Many people die without making a will. Depending on the size of their estate and which of their near relatives survive, dying intestate may have undesirable results. A surviving spouse or civil partner may find they are sharing the estate with distant relatives of the deceased who are not only already well provided for, but may have had little contact with the deceased for some time.
- What is POAT?
POAT is an income tax levied since 6th April 2005 on the value of benefits still enjoyed in respect of assets which you gave away as long ago as 18th March 1986. It was introduced to catch people who undertook “artificial” Inheritance Tax (IHT) planning exercises, legitimately and successfully at the time, and to deter people from attempts to avoid IHT in future, particularly in relation to houses which they continue to “occupy”.
- The certificate provider as a safeguard
As an important safeguard against abuse, one of the requirements for a valid lasting power of attorney (LPA) is for the document to be signed by an independent person who can confirm:
Planning what will happen to your estate means your assets will be allocated to your loved ones as you’d like them to be.
Our estate planning and probate experts can help you draft a Will that makes it easier for your executors to pass on your wealth in the most tax-efficient way.
- Our estate planning services
Our expertise includes:
France - UK owners of property in France who use it as a holiday home rather than their permanent residence, and in particular if they rent it out, should know that the French Tax Bill which introduced social taxes for rental income, and capital gains to non-resident individuals came into force on 18th August 2012. The succession tax allowances for individuals (eg spouse and children) inheriting French property also reduced.
On 18 June a Consultation Paper was published on this topic. The intention is to limit to £3600pa the premiums for new ‘qualifying policies’ taken out from 6 April 2013 by any individual, if the maturity proceeds are to qualify for tax free status. The tax relief may also not apply if the beneficial owner of a policy is not an individual – eg it has been placed in a Trust from which the settlor has been excluded as a beneficiary.