Life Policies: Pure Endowment policy linked with a Term Assurance policy: Discounted Gift Schemes: what to do
Before referring anything to the Actuarial Team you should make sure that the taxpayer or agent has forwarded
- the policy schedule(s)
- the policy provisions
- the trust
- the illustrative value of the discount/transfer value as given by the company providing the plan.
Once you have these documents the file should be referred to the Actuarial Team with a request to consider whether the level of discount claimed is justified.
That Team may ask you to seek further information but will take over responsibility for the investigation of this aspect.
Under no circumstances should the caseworker enquire into the deceased’s state of health at the time of the effecting of the scheme nor ask for any medical evidence. These enquiries must only be made by the Actuarial Team.
The Actuarial Team will advise on the tax position. You may then issue any tax calculations.