Estate Duty on Life Assurances and Annuities

Abstract

SynopsisThe paper is concerned mainly with the incidence of estate duty on life assurances and annuities under sub-sections 2 (1) (c) and 2 (1) (d) of the Finance Act 1894. The effect of changes in the law introduced by section 34 of the Finance Act 1959 are examined by reference to two trust policies effected under the Married Women's Property Acts, one a policy for the absolute benefit of the wife of the life assured and the other a policy also for the benefit of the wife but with the trust falling should she predecease her husband. Where the assessment falls under sub-section 2 (1) (c) the treatment of life policies now follows the same lines as gifts of other types of property and the requirements to obtain limitation or exemption from duty are considered in detail.The paper goes on to review the incidence of estate duty on joint life and last survivor annuities according to the manner in which the contract is written.Finally some examples are given of the effect on estate duty of dealings with policies by beneficiaries in terms of section 34 of the Finance Act 1959.