This course provides practical guidance on the South African tax treatment of life insurance policies that are ceded or transferred to a company or another person. It explains the income tax, CGT and estate duty implications for both the deceased estate and the new policy owner.
The session unpacks how life insurance policies are taxed when ownership changes, including cession, buy-outs and transfers to companies. It examines the tax treatment of lump sums received, premiums paid by the new owner, and the consequences when the insured person passes away, with clear practical examples.
Key Topics Covered:
• Tax treatment of ceded or transferred life insurance policies
• Lump sum proceeds: income tax and CGT considerations
• Premiums paid by the new owner: deductibility and tax impact
• Estate duty implications in the deceased estate
• Tax consequences for companies owning life policies
• Common structuring risks and practical pitfalls.
• Accountants,
• Tax practitioners,
• Auditors,
• Estate planners,
• Financial advisers,
• Company directors,
• Trustees and professionals involved in business succession planning or estate and tax structuring involving life insurance policies.
