J
Jimilo
Guest
Hi,
I know that protection benefits paid by life assurance policies are exempt from tax e.g. no exit tax applies, no tax payable by the remaining spouse on a death claim.
However, I'm not so sure what happens where a death claim goes to the policyholder's estate, with the ultimate benficiary being the policyholder's son/daughter. In this case does the son/daughter have to pay Capital Acquisitions Tax on the claim amount as with any other inheritance (subject to thresholds etc.)? Or are the (non-investment) proceeds from life assurance policies exempt from CAT?
I'd appreciate any help in this matter.
Cheers
J
I know that protection benefits paid by life assurance policies are exempt from tax e.g. no exit tax applies, no tax payable by the remaining spouse on a death claim.
However, I'm not so sure what happens where a death claim goes to the policyholder's estate, with the ultimate benficiary being the policyholder's son/daughter. In this case does the son/daughter have to pay Capital Acquisitions Tax on the claim amount as with any other inheritance (subject to thresholds etc.)? Or are the (non-investment) proceeds from life assurance policies exempt from CAT?
I'd appreciate any help in this matter.
Cheers
J