Life insurance policies held in the UK
#16
Re: Life insurance policies held in the UK
The US does not impose taxes on the proceeds from Life Insurance. Been there and done that and it has always been tax free.
#18
Re: Life insurance policies held in the UK
Hubbie and I took out life insurance policies in the UK several years ago and they have about 17 years left to run. Other than the house here they are the bulk of what we will leave to our children.
Now we're all living in the US. If we die, are the life insurance payouts taxed in the UK or the US?
I've been assuming they are included in our estate here, therefore subject to US estate tax and we should write a will to cover them here.
But I'm wondering if they're actually subject to UK inheritance tax laws.
I'm planning to talk to someone here about a will and estate tax etc but do we need a UK will as well?
Anything else here I should be thinking about?
Now we're all living in the US. If we die, are the life insurance payouts taxed in the UK or the US?
I've been assuming they are included in our estate here, therefore subject to US estate tax and we should write a will to cover them here.
But I'm wondering if they're actually subject to UK inheritance tax laws.
I'm planning to talk to someone here about a will and estate tax etc but do we need a UK will as well?
Anything else here I should be thinking about?
Reg. Frank R.
#19
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Joined: Mar 2008
Location: Santa Cruz, CA
Posts: 4,913
Re: Life insurance policies held in the UK
Out of curiosity, did you use attorneys to draw up either will, did they know that you were also drawing up a separate will for assets held in a different country and were they OK with that?
#20
Re: Life insurance policies held in the UK
Tough luck on the company unless the policy has a specific exclusion clause and/or the policy was taken out just before emigrating.
#22
Re: Life insurance policies held in the UK
I spoke to their trust specialists and they say as long as the trustees are in the UK it doesn't matter where the beneficiaries live. We now have a primary beneficiary and secondary beneficiaries and I think that side of things is sorted.
#23
Re: Life insurance policies held in the UK
Yes to all questions. Jim has no assets in the US so he does not have a US will. His assets are in Canada and therefore has a Canadian will. I do not have assets in Canada and therefore have no Canadian will. All my assets are in the US and therefore I have a US will.
I work for attorneys and yes, they drew up my will. Jim has his attorney in Canada do his.
#24
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Joined: Mar 2008
Location: Santa Cruz, CA
Posts: 4,913
Re: Life insurance policies held in the UK
Yes to all questions. Jim has no assets in the US so he does not have a US will. His assets are in Canada and therefore has a Canadian will. I do not have assets in Canada and therefore have no Canadian will. All my assets are in the US and therefore I have a US will.
I work for attorneys and yes, they drew up my will. Jim has his attorney in Canada do his.
I work for attorneys and yes, they drew up my will. Jim has his attorney in Canada do his.
The thing that concerned me (but which Ray and others seem to have done quite happily) was the idea of one person having two separate wills, each dealing with separate parts of their estate in different jurisdictions. I imagined that in that case there could be problems when going through probate if the executor in either jurisdiction had to explain why their inventory and appraisal of the estate didn't cover everything.