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.
- Leaving Flat Rate Scheme for VAT 230 6
- Can I take action against my accountant for incompetence? 1,542 42
- CIC Company 379 2
- What are options for non CA firm 2,647 57
- Is this a scam? 754 8
- Companies Made Simple Dashboard? 113 1
- Employment allowance (again) :( 324 2
- Mortgage to buy property in limited company 232 5
- New company - form a group? 154 2
- Sage valuing foreign bank balances 172 4
- PITA client 208 3
- VAT on sales net of CIS suffered 362 9
- Do I need to report this to SOCA 3,311 33
- Has anyone read the implications of the Lisbon treaty? 741 15
- Dividend dates 487 8
- R&D tax credit claim 212 5
- CIS Deductions 271 3
- Estate agent and VAT registration 113 1
- is this fraud? 787 13
- Married woman dies owning marital home 495 5
- Property exchange - 8-year legal delay following fall-out 598
- Cancelled 345
- SAGE Payroll Data for Import to MS Dynamics AX 331
- Cancelled 282
- Have you staged yet for auto enrolment? 254
- Probiz 241
- VAT on non-profit making clubs (ECJ VS West Dorset Golf Club) 185
- Phishing emails purporting to be from CIPFA? 176
- Car leasing scheme 175
- Is this UK incapacity benefit taxable in UK or Jersey? 153