Life Insurance Fund Redemption and transfer
Life insurance in the name of mother.
Premiums used to build up a fund that is then used to pay the mortality charge.
On death the payout is into trust that benefits children.
Children have paid all the premiums.
Total premiums paid exceed current fund value
If the policy is now surrendered before death the current balance of the fund has to be paid to the mother.The mother then transfers the money to the children.
How should this be treated? Is the cash transfer from the mother to the children a PET or would HMRC accept it as a repayment of a debt to the children who have paid all the premiums?
Any guidance much appreciated.
- New client has not reported director's pay by RTI 311 9
- Auto Enrolment - Director Only Answer 1,383 20
- SAGE 50 PAYROLL YEAR END 202 5
- What do you all do in your spare time? 570 26
- So who has completed a 2015 tax return then? 361 6
- Can software startup claim VAT refund during development? 139 6
- Tax implications on building an 'office' 187 2
- VAT on employee loan 240 2
- VT Final Accounts puts "Cost of Sales - Carriage" and "Cost of Sales - Other Costs" into "Other Costs". Is that compulsory? It seems mad. 170 3
- Auto Enrolment, Payroll, Small Client Advice and what to charge? 698 18
- Partial PPR relief to non-resident after 05 Apr 2015 145 1
- Purchased Goodwill 99 1
- Accounting Package for Projects 69 2
- How do we get US withholding tax back? 88 1
- Are accountants keeping up with the pace of change? 202 4
- Recruitment agencies 582 1
- Do you charge fee or % for Successful appeal against HMRC penalties? 517 20
- Letting Agents - requirement for audit of clients accounts 268 9
- HMRC RANT!!!! 488 8
- Scams are not always obvious 2,040 33
- New Fangled Penalties 1,076
- Moving away from CCH software 929
- QROP pension input amounts 423
- write off loan or loan to equity swap or both 370
- HMRC BENCHMARK EXPENSES 337
- Unused Losses and Post Cessation Receipts 309
- fraud 262
- EIS relief on transferring shares to spouse 235
- Sole trade business in UK, but the owner works from EU 209
- Construction CIS LLP Company 189