IHT & joint life With Profit Bonds

mjs · Postby **mjs** » Thu Jun 12, 2003 9:58 am

Where a With Prifits Bond is written on a joint life basis (father & son) with payout on the death of the second life does any part of the value of the Bond need to be included in the calculation of the estate value declared on the death of the first life for probate/IHT purposes.

mwestlake@towrylaw.c · Postby **mwestlake@towrylaw.c** » Fri Jun 13, 2003 10:43 am

Yes,potentially all of the value of the bond and not just half.

The ownership of the bond is not the same as the lives assured and typically a Bond will be written with Joint ownership.

If the bond is owned jointly, and the father dies first, the whole value of the bond would need to be included in his estate for Probate purposes.

A deed of assignment could be arranged to assign the bond to the son and this would create a potentially exempt transfer in the Father's estate for 7 years.

There are taxation implications on assignment for money or monies worth but these do not apply to a gift for no consideration.

A good IFA should be able to help you further.