Life Insurance Tax Implications

[JustinCasey]

Hi there, I am hoping someone can help with my query;

A Dual Life Insurance Policy, where my parents are the insured lives, has been assigned to me and I am paying the monthly premium on the policy.

I am wondering if there are tax implications to be considered for me as the policy owner when the policy ultimately matures?

I have looked at some of the Life insurance 'Deed of Assignment' and similar posts on here, but I didn't stumble upon anything specific regarding taxation.

Any help or guidance would be greatly appreciated!

 

[Steven Barrett]

If you are the owner of the policy there is no inheritance tax implications and the proceeds of the policy are outside probate. It is payable on production of a death cert and paid straight to you.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[JustinCasey]

Thanks for your reply Steven, much appreciated. I wasn't sure if this was the case or not as I wasn't the person who initially took out the policy for the two lives insured, nor am I the insured party.

 

[Realcork]

My understanding is that benefit will not be subject to probate, however the assignment does not change ownership so benefit will still be potentially subject to CAT ( if total inheritance above child Cat threshold ).