Surrender value Definition | Legal Glossary | LexisNexis (2024)

Copyright © 2024 LexisNexis

Published by a LexisNexis Pensions expert

The surrender value is the amount paid when an insurance policy is cancelled before it reaches the agreed maturity date.

View the related practice notes about Surrender value

Benefits and means testing

Benefits and means testing There are a number of benefits that older people can claim that carry a financial eligibility requirement. In practice this means that if their capital and/or income are over a specified limit they will not qualify for the benefit, whether it be for a housing claim or for Pension Credit. In general the rules are the same but the practitioner will also have to be aware of the principles applicable to deprivation of assets. Claimable benefits The following table illustrates some of the more popular benefits that the older client may wish or need to claim. The client might only fall into one category or several. For instance, a pensioner could also be both disabled and on a low income, which would open up further available benefits to them. Note that almost one-half of the benefits are wholly means tested or a hybrid of non-contributory and means tested. Of the rest, a substantial number may only be claimed if an adequate amount...

What is an employment-related security?

What is an employment-related security? Determining whether an employment-related security exists is a crucial step in determining whether the specific (and sometimes punitive) income tax and National Insurance contributions (NICs) charges on employment-related securities arise. The definition of an employment-related security is broad and can be broken into two key elements: • what is a security—which includes shares, debt, derivatives and interests in investment partnerships, and • is the security employment-related—which it is if the right or opportunity is available by reason of employment or made available by an employer What is a security? Securities are defined very widely and include the following: • shares (including stock) in any: ◦ body corporate (whether UK or non-UK incorporated), or ◦ non-UK unincorporated body • rights under contracts of insurance other than ‘excluded’ contracts of insurance (ie pension annuity contracts; long-term non-annuity insurance contracts with no surrender value; and general insurance contracts which are not treated under generally accepted accounting principles (GAAP) as financial assets or liabilities)...

View the related precedents about Surrender value

Standard order 1.1—financial directions order—longer version

Standard order 1.1—financial directions order—longer version In the Family Court sitting at [Court name] No: [Case number] [ The Matrimonial Causes Act 1973 OR The Civil Partnership Act 2004 OR The Child Support Act 1991 OR Schedule 1 to the Children Act 1989 OR The Inheritance (Provision for Family and Dependants) Act 1975 OR The Matrimonial and Family Proceedings Act 1984 and Schedule 7 to the Civil Partnership Act 2004 OR The Trusts of Land and Appointment of Trustees Act 1996 OR The Married Women’s Property Act 1882 and ss 67, 68 and 74 of the Civil Partnership Act 2004 ] OR [(DELETE AS APPROPRIATE)] The [Marriage OR Civil Partnership OR Relationship OR Family] of [applicant name] and [respondent name] After hearing [name the advocate(s) who appeared] After consideration of the documents lodged by the parties [ [(IN THE CASE OF AN ORDER MADE WITHOUT NOTICE)] After reading the statements and hearing the witnesses specified in para [para number] of the Recitals below] Order made by [name...

Standard order 1.2—financial directions order—shorter version

Standard order 1.2—financial directions order—shorter version In the Family Court sitting at [Court name] Case No: [Case number] [ The Matrimonial Causes Act 1973 OR The Civil Partnership Act 2004 OR The Matrimonial and Family Proceedings Act 1984 and Schedule 7 to the Civil Partnership Act 2004 OR Schedule 1 to the Children Act 1989 ] [DELETE AS APPROPRIATE] The [Marriage OR Civil Partnership OR Relationship OR Family] of [applicant name] and [respondent name] After hearing [name the advocate[s] who appeared] After consideration of the documents lodged by the parties ORDER MADE BY [NAME OF JUDGE] ON [DATE] SITTING IN [OPEN COURT OR PRIVATE] AT A [FIRST APPOINTMENT OR FINANCIAL DISPUTE RESOLUTION APPOINTMENT] [DELETE AS APPROPRIATE] WARNING: IF YOU DO NOT COMPLY WITH THIS ORDER, YOU MAY BE HELD TO BE IN CONTEMPT OF COURT AND YOU MAY BE SENT TO PRISON, BE FINED, OR HAVE YOUR ASSETS SEIZED. The parties 1 The applicant is [applicant name] The [first] respondent...

View the related q&as about Surrender value

A non-UK domiciled settlor has assigned a non-UK ‘pure life’ policy (ie with no surrender value) to a settlement and continues to pay the premiums from a non-UK account. What is the IHT treatment of the life policy proceeds if the settlor continues to pay the premiums after becoming deemed domiciled in the UK (but not as a formerly domiciled resident)?

A non-UK domiciled settlor has assigned a non-UK ‘pure life’ policy (ie with no surrender value) to a settlement and continues to pay the premiums from a non-UK account. What is the IHT treatment of the life policy proceeds if the settlor continues to pay the premiums after becoming deemed domiciled in the UK (but not as a formerly domiciled resident)? The general rule, set out in section 48(3)(a) of the Inheritance Tax Act 1984 (IHTA 1984), is that property comprised in a settlement is excluded property if it is non-UK situs and the settlor was neither domiciled in the UK nor deemed domiciled when the property became comprised in the settlement. The settlor’s domicile must be tested on each occasion on which property becomes comprised in the settlement. This rule applies to all occasions of charge occurring on or after 22 July 2020, even if the property in question became comprised in the settlement long before that date. Clarke is of the view...

Are life policies classed as exempt assets by the local authority when determining an individual’s capital in assessing how much they must contribute towards their care fees? Are personal representatives obliged to report to the local authority if assets come to light after death that were not included in their financial assessment of the deceased’s capital?

Are life policies classed as exempt assets by the local authority when determining an individual’s capital in assessing how much they must contribute towards their care fees? Are personal representatives obliged to report to the local authority if assets come to light after death that were not included in their financial assessment of the deceased’s capital? Various types of assets and property are disregarded for the purposes of assessing a person’s liability to contribute towards their costs of care provided by a local authority. The categories of disregarded capital are set out in Income Support (General) Regulations 1987, SI 1987/1967, Sch 10 (Capital to be disregarded). Schedule 10, paragraph 15 of the regulations specify that: ‘the surrender value of any policy of life insurance’ is to be disregarded. For further reading, see

View the related News about Surrender value

Private Client weekly highlights—16 December 2021

This week’s edition of Private Client highlights includes: (1) HMRC publishes further updates to its Trust Registration Service Manual; (2) Mattingley v Bugeja, in which the court dismissed a claim of a secret trust; (3) Review of the People at the Heart of Care: adult social care reform white paper; (4) HMRC updates its Inheritance Tax Manual to reflect excepted estates rules from 1 January 2022; (5) Digitalisation trends in the immigration context, and (6) Recent developments in ESG-inspired disputes.

Private Client weekly highlights—14 October 2021

This week’s edition of Private Client highlights includes: (1) Golden Belt 1 Sukuk Company, in which the court held that the trustee had power under the Trustee Act 1925 to compromise a claim in relation to a Shari’a investment structure; (2) HMRC has published new guidance detailing how it deals with taxpayers who are involved in tax avoidance, tax evasion or repeated insolvency; (3) The Chartered Governance Institute has published model terms of reference for charities’ remuneration committees; (4) HMRC v Fisher, where the Court of Appeal found that shareholders were ‘quasi-transferors’ under the transfer of assets abroad rules; (5) In the matter of the Piedmont and Riviera Trusts, in which the Royal Court in Jersey has declined to follow a recent decision of the Bermuda court on the role of protectors, and (6) Predictions for the Autumn Budget and Finance Bill.

Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.