Taxation of Gift Inter Vivos Insurance

The cash lump sum paid under Gift Inter Vivos Assurance is normally free of income tax and capital gains tax.

Unless it is written under trust, on death the proceeds of an ‘own-life’ policy will form part of your estate. If the policy is written under trust then the proceeds on death will not normally form part of your estate for Inheritance Tax purposes. Further information about writing policies under trust can be obtained from your Financial Adviser.

An ‘own-life’ Gift Inter Vivos policy should normally be written under trust. Please speak to your Financial Adviser about the tax implications this may have.

If you are insuring someone else then the proceeds of the plan will be payable to you as the policy owner, and not to the estate of the person you are insuring. The proceeds will then form partof your estate.

The tax treatment depends on your personal circumstances. All references to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which is subject to change.