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Date Posted:
27-Aug-2013 14:42:18
Life Insurance

Insurers recognise the amount of paperwork involved following a death and have therefore made the process of making a claim simple. Get in touch with the insurance company and let them know your intent to make a claim. In order to make a claim you will need to provide a death certificate, claim form and the policy document. The insurance provider will require original copies of these documents so it is a good idea to send this by recorded post. Don’t worry if you are unable to locate the life insurance certificate. The Association of British Insurers can help locate the policy.

Life insurance does, to an extent, may have been taken to circumvent Probate. While all assets within the estate including money, property and valuable possessions are all required to be subject to a probate grant, any pay-outs made as part of a life insurance policy may not be.

This is of great advantage for a number of reasons. Firstly, estates may have a life insurance policy to pay any potential inheritance tax or to minimise the amount due. However, the more money that has been tied up in a life insurance policy, the less money there is to be managed whilst applying for probate, thereby keeping the probate fees as low as possible.

Secondly obtaining probate can be time consuming and can leave the family without essential funds for day to day living. Life insurance pay-outs are generally made within 30 to 60 days, allowing for considerably quicker access to necessary money than is usual with probate.

It is necessary to notify HMRC of any life insurance or assurance policies by using an IHT410 form.
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