The life insurance contract allows you to designate one or more beneficiaries who will receive the funds in the event of the death of the subscriber, or at the end of the contract. The beneficiary is not always the subscriber. Should you declare life insurance for taxes?
Life insurance is a financial investment popular with many individuals who want to grow their savings for a variety of reasons: prepare for retirement, pass on capital to loved ones, speculate on the financial markets to make a capital gain, put money aside for a project… By taking out this type of contract with your bank or insurance company, you will certainly have fees to pay, but you can potentially generate interest which will inflate your initial investment. Make sure you choose the media that suits you best: are you looking for performance or security? Likewise, will the designated beneficiary have to declare the life insurance for taxes?
Declaration of the life insurance contract to the tax authorities
In most cases, you will be required to declare your life insurance contract to the tax authorities if you are the beneficiary of the contract of a deceased person. It is not always easy to know if you have been named the beneficiary of a life insurance policy. : you can make a request to AGIRA (Association for Insurance Risk Information Management) online or by mail. You must declare to the tax authorities contracts taken out before 11/20/1991 and significantly modified by amendment from this date (for funds deposited by the insured after his 70th birthday), but you must also declare contracts taken out from 11/20/1991 for sums paid by the subscriber after his 70th birthday.
Life insurance declaration, how to proceed?
The declaration of a life insurance contract follows a specific procedure: as a beneficiary, you must file a partial declaration of inheritance via the dedicated form (form 2705-A) with the registration service to which you are attached. the home of the deceased person. If you are the beneficiary of several life insurance policies, you will need to complete a form 2705-A by insurance company. The form can be completed online or in paper version, and you must make your declaration within six months following the death (if it took place in mainland France). There are special deadlines for the departments of Guadeloupe, Guyana, Martinique, Mayotte and Réunion.
How are life insurance policies taxed in the event of total or partial surrender?
On sites dedicated to insurance, it is possible to read that life insurance can be partially or totally redeemed. Surrender refers to the withdrawal of your money from your life insurance. In the same vein, a partial surrender refers to withdrawing part of your life insurance money. Conversely, a total surrender constitutes the withdrawal of all of the money from your life insurance. This means that depending on the type of redemption, you have a tax rate that applies. Generally, for a subscriber who has chosen the single flat-rate direct debit (PFU), any redemption is set at a flat rate of 12.8% and 17.2% social security contributions. Which gives an imposition of 30% overall.
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2023-09-14 20:02:07
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