New queries, issue 4526

The game is bond

Advice is required on the proceeds of life assurance received by executors.

A UK resident owned a non-qualifying life assurance policy when he died. The policy an investment bond was in his sole name and he was the only remaining life assured. A chargeable event gain arose calculated by reference to the surrender value immediately before death and assessable on the deceased in the period to death. The value of the plan on death being a different figure from the former value was also provided by the assurer and used for inheritance tax and probate purposes.

Under the policy terms the claim value payable to the executors was quantified when the assurer was notified of the death. In effect the “investment” was still in the market post death and the claim value exceeded the probate value. Do readers...