Tax on Life Assurance

[jmcdfinance]

Hi, can you advise me on paying tax on a life assurance policy. If my kids were the sole recipients of my 600,000 life policy would they have to pay CAT? I don't believe exit tax is applied as the benefit is payable on death. Also, if i left a % of the policy to my nephew, would they pay tax?
Thanks for your help

 

[Joe_90]

CAT is paid by the recipient of a gift.

If your estate has €600k in it then they will pay Capital Acquisitions Tax based on the thresholds and rates at the date of death based on their relationship with you. There is a specific exemption for "section 60" policies these are policies taken out to pay CAT. You should seek specific professional advice in relation to this matter.