Otherwise the contract would fall in succession

In France, it is the tool par excellence for transmission of heritage. From there comes the coefficient of sympathy from savers to ce placement. Yet, investors do not always lend attention that should be the beneficiary clause. Is it still depends on the success or non-transfer of heritage in any tax-free. Therefore, a reminder of the basic truths is not unnecessary.

First, you need to know that the designation may occur at any time: at the time of course, but also at a later date, a rider to the contract, of a Holograph will or a notarial deed.

If the standard clause can be amended, must be the name of the first beneficiary remained secret. Indeed, if the latter has been informed and he accepted the benefit of the contract, the designation cannot be changed. Impossible, then, to change its mind. In life insurance, the beneficiary clause is generally standardized and worded as follows: "the spouse not separated from body of the Subscriber, if children born or unborn Subscriber, alive or represented by equal shares; If the heirs of the Subscriber.

Such a clause means that death of the policyholder, the insurer must pay capital to the surviving spouse. Subject, of course, that it accepts the benefit of the contract, and that he was himself still alive. Otherwise, these are children who will share, equally, the sum. And if one of the children is also deceased, their children will benefit from the share of capital returning him. Finally, if full of misfortune all designated beneficiaries disappeared before the death of the Subscriber, the capital will go to the heirs. However, according to MeNathalie Couzigou-Suhas, notary in Paris, "it is better avoid, as far as possible, the standard clause and always to write its own clause based on his personal situation".

The fact is that, in many cases, the standard clause is irrelevant. Also is it not hesitate to write another. Especially if you want to designate another beneficiary as a member of his family. A non-married partner, for example. Or even a friend. As life insurance ensures the rights of succession of 60 for a stranger to the family. It is recommended to specify the name and first name, date of birth of the recipient, so that they can find it easily if necessary.

Second recipient

It is also prudent to designate a beneficiary for second place, where the first would refuse the benefit of the contract or would, himself, died when the time comes. Otherwise, the contract would fall in succession. With all that this implies payment price strong succession rights. When clause provides sharing "by equal parts", of course, this means that all recipients will receive the same amount. Nothing prohibits anticipate another allocation and benefit someone in particular. This may be the case in the presence of a disabled child. Better then to indicate, black on white and in percentage terms, the desired distribution.

Another wording to which attention must be: "living or represented". MeCouzigou-Suhas says, "this formulation allows in case of death of a child that his offspring may be still life". Indeed, if the clause includes only "my children by shares equal, otherwise my heirs", this progeny will be entitled to anything.

Same thing if it is not stated "my children born and unborn." Especially if the Subscriber is in age of the children. Without this precaution, it could force a child to be born. Note that the Subscriber may be conditions in which the beneficiary clause will be paid. For example, in order to focus on his grandchildren, can decide when and in what form they can collect the capital of the insurance (form of annuity including).

Tax benefits

For a married couple, it is possible to designate a beneficiary in quasi-usufruit. "In this case, the surviving spouse will have full control of the capital and, if he spends everything, this will debt in succession and will reduce the cost of estate, says MeCouzigou-Suhas, and if there is still money at his death, this capital will return to the children." This clause must however be considered as between spouses have common children.

Life insurance allows, among others, to benefit a foreign person in the family, through this, does not have to pay exorbitant rights of succession. An advantage of valuable, especially to protect the surviving partner. Indeed, remember that the spouses are foreign nationals under the law. They do not inherit from the other. In fact, is well understood interest of heritage transmission via life insurance. It must be careful to make this too blatant tax aspect with the tax authorities. In such a case, may well decide to submit the capital to the rights of succession. Another pitfall: the heirs who may feel aggrieved if it is proven that transmitted capital is very important. The flexibility of life insurance should not be confused with the laxity.