P
picasso
Guest
My friend's aunt in law (stranger) died recently. He found out that she had transferred a life assurance bond into his name in 2002 unbeknownst to him. Does he pay inheritance tax on her death? Or does he pay gift tax at the date of transfer to him? Is the tax payable on the gross market value at valuation date? When he subsequently encashes the bond, does he pay 25% exit tax on investment gain over the whole life of the policy? If so, is this double taxation??