IHTM20026 - Life Policies: investigating form IHT410: if the answer to Question 10 is yes

In this instance there will be a lump sum payable under a purchased life annuity as a result of the deceased’s death. This is usually because the annuity is ‘capital protected’. This means that the gross annuity payments received during life total less than the purchase price of the annuity - the difference is refunded as a lump sum.

The following information should be provided:

• the name of the company that sold the policy
• how the lump sum has been calculated (if known)
• the amount of the lump sum payable
• to whom the lump sum is payable if it is claimed that it is not payable to the estate, and when and how the deceased disposed of the right to receive it.

When all this information is available, follow the guidance at IHTM20027.

If there is any reference to ‘capital redemptions’, or to Foundation Insurance (Capital Redemptions) Ltd, refer to IHTM20061.

See also IHTM20633.