IHTM20045 - Life Policies: investigating form IHT403: payment of premiums on a life policy for the benefit of someone else - procedure

Where the deceased paid the premium on a life policy for the benefit of someone else (IHTM20044) you will need to consider the following questions to decide on the course of action.

Was the policy for the benefit of an exempt beneficiary?

If the answer is ‘yes’ the payments of the premiums are exempt and you do not need to take any further action.

If the answer is ‘no’, you will need to consider if the deceased was excluded from possession and enjoyment of the policy.

If not, the payment of the premium may be a Gift with Reservation (IHTM14421).

If the deceased was excluded you will need to ask if any annuity was purchased by, and payable to, the deceased.

If it was, you should refer the case to the Actuarial Team for advice (IHTM20371).

If not, you should ask, if IHTA84/s21 or any other exemption has been claimed in respect of the payment of any premium.

If it has you should consider the claim(s) for exemption before treating the payment of the premiums as chargeable transfers.

If not, you should treat the payment of all premiums by the deceased as chargeable transfers.