Sometimes gifted with-profits policies contain an option to
surrender bonuses before the policy matures.
If the policy is not in trust, Inheritance Tax should be
claimed on the death of the deceased under IHTA84/S4 (1) if (and to
the extent that) the deceased could have obtained the bonuses and
retained them for their own benefit. This applies even if the
policy moneys themselves (and any unsurrendered bonuses) are
payable under the policy to someone other than the deceased or
their legal personal representatives.
