IHTM20000 - Life Policies: Contents
Introduction to life policies
What a life policy is |
|
Life policies and Inheritance Tax |
Investigating Form IHT410
Introduction to Form IHT410 |
|
If the answer to Question 1 is Yes |
|
If the answer to Question 3 is Yes |
|
If the answer to Question 4 is Yes |
|
If the answer to Question 7 is Yes |
|
If the answer to Question 10 is Yes |
|
If the answer to Question 10 is Yes: chart |
|
If the answer to Question 12 is Yes |
|
If the answer to Question 14 is Yes |
Investigating Form IHT403
Introduction |
|
Gift of an existing life policy |
|
Gift of an existing life policy: chart |
|
Payment of premiums on a life policy for the benefit of someone else |
|
Payment of premiums on a life policy for the benefit of someone else: chart |
|
Assignment of the right to a lump sum due under an annuity contract |
Particular situations to look out for
Foundation Insurance (Capital Redemptions) Ltd |
|
Midland Life (or HSBC) Cluster Trusts |
Definitions
"Assured" and "life assured" |
|
"Premium" |
|
"Surrender value" and "open market value" |
|
"Claim value" |
|
"Insurable interest" |
|
"Sum assured" |
|
"Back-to-back policies" |
|
"Mortgage protection policies" and "Mortgage indemnity guarantees" |
Types of policy
Whole life policy |
|
Term, term assurance or temporary policy |
|
Pure endowment policy |
|
Endowment policy |
|
With-profits policy |
|
Unit-linked policy |
|
Alternative benefits policy |
Trusts of life policies
Introduction |
Policy settled on its own trusts
Express life interest in favour of settlor |
|
Conditions required for policy to be comprised in a settlement |
|
Life interest in favour of a beneficiary other than the settlor |
|
Examples: England, Wales and Northern Ireland [DQ] |
|
Examples: Scotland |
Policy settled on other trusts
Policy settled on other trusts |
General power over policy proceeds
General power over policy proceeds |
Married Women's Property Act policies
Introduction |
|
Proper law |
|
The rule in Phipps v Ackers |
|
Trustees' remuneration |
|
No trustee appointed |
Policies on the deceased's life not connected with any other transaction (except a trust)
Introduction |
|
Contracts of life insurance in existence prior to 22 March 2006 |
Policy unconnected with a gift or trust
Introduction |
|
Possible discount |
|
Policies with Independent Order of Foresters, Homeowners Friendly Society, Family Assurance Friendly Society and similar friendly societies |
Policy effected by the deceased for their own benefit but gifted later
Introduction |
|
Value of policy: General rule |
|
Value of policy: Special rule: Introduction |
|
Value of policy: Special rule: Exclusions from special rule |
|
Value of policy: Special rule: Term assurance policies excluded from special rule |
|
Value of policy: Special rule: Modification of special rule for unit-linked policies |
Policy effected for the benefit of someone else from the start
Introduction |
|
Policy contains option to surrender bonuses to the transferor |
Policies on the joint lives of the deceased and another
Introduction |
|
Ascertaining the beneficial interests |
|
The situations that can arise and the Inheritance Tax claims that can result |
|
Joint mortgage protection policies * |
Potentially Exempt Transfer treatment for renewal premiums
Payment of premiums for policies in Accumulation and Maintenance or Disabled Trusts |
|
Payment of premiums for policies gifted to individuals * |
Policies based on the life of another not connected with any other transaction (except a trust)
Introduction |
|
Chart |
Life policy linked with an annuity
Introduction and background |
|
What to do first |
|
What to do when TG Actuarial Team's advice is received |
|
The current statutory position |
|
The Associated Operations test |
|
Annuity and policy issued by different companies |
|
Deferred annuity contract |
Pure Endowment policy linked with a Term Assurance policy
Introduction |
|
Differences between PETA schemes and Discounted Gift schemes |
|
PETA schemes |
Discounted Gift Schemes
Introduction |
|
What to do |
|
List of Companies and Scheme names |
|
Basic scheme |
|
Quantification of Inheritance Tax claim |
|
Factors affecting the open market value of the retained rights |
Capital Conversion or Flexible Funding plans
Capital Conversion or Flexible Funding plans * |
Life Policy linked with a loan and Inheritance Trusts
Introduction |
|
What to do |
|
Chart |
Original scheme
How the original scheme typically worked |
|
Legislation designed to counteract scheme |
|
Revised scheme following legislative changes |
Reverse Loan scheme
How the reverse loan scheme typically worked |
|
Legislation designed to counteract reverse loan scheme * |
Policies with Countrywide (formerly Premium Life) Assurance Company
Introduction |
|
What action to take |
|
How to identify the two schemes |
Policies with Canadian insurance companies
Introduction |
|
The companies concerned |
|
Governing law |
Annuities payable to deceased/transferor by insurance companies
Introduction |
|
Purchased life annuities: types and potential claims |
|
Annuities ceasing on the death |
|
Annuities which continue after the death |
|
Annuities purchased in joint names |
