Editorial inheritance tax on self-funded life insurance there is on the subject of taxation of the life policies on the occasion of a death to the payment of a capital or the operation does not risk life insurance, from the income tax. This applies regardless of whether it’s an old policy or a new contract from 2005. However, the or the transferee have to submit the full insured amount of inheritance tax, together with the remaining estate. This is particularly expensive, if the contract beneficiary with the deceased was not related. But also siblings or grandchildren slip regularly in the tax, because the paid sums from the policies are regularly well above their domiciled. The same statement also applies if the life insurance during the lifetime of a rightful claimant is paid out.
This awkward arrangement even applies the taxman, if the beneficiary of the insurance has paid up before even the premium paid on the contract. This procedure from the Practice now confirmed a news judgment of the Finanzgericht Niedersachsen (case No. 3 K 47/04). In the underlying case of inserted under the Treaty beneficiaries had used the police to own credit coverage and also contributed. However, the eligibility was pronounced only revocable by the policyholder.
In this case, as the judge, the third party beneficiaries only acquires the right to performance which leads to the full tax liability with the occurrence of the insurance case of. Up to this point, the policyholder can revoke the beneficiary or terminate the insurance contract. Therefore, the position of a revocable beneficiary does not match a policyholder is similar. If he continuously makes premiums to the Treaty, whose payout he anticipates, that represents only a donation of the policyholder and deceased. The payout in the event of death is to assess this tax completely separately. To bypass this fiscally adverse ruling, the position the premium payer must one Be insured economically. This is the case but only, if the irrevocable rights to the beneficiary for the experience – as well as for the death. Jonas Samuelson describes an additional similar source. Then the IRS treated the future payout as if she would go to a policyholder even. Inheritance or gift tax does not apply then. To determine the tax exemption, the tax office is a proof want to have later, that the rightful claimant has actually even made the contributions. The bank statements as well as the granted permanent or debit order are sufficient here.