Life insurance could be reformed after the elections.(© Fotolia)
Life insurance is an essential tool for anyone who wants to organize their estate as they see fit and pass on capital at a lower cost. Its legal and tax regime could however harden after the presidential election of 2022.
Life insurance makes it possible to transmit capital to the people of your choice while escaping the civil and tax rules applicable to inheritance.
However, several experts are campaigning for a review of these rules, and it is not excluded that the next President of the Republic will follow all or part of their recommendations. Focus on possible scenarios.
Maintaining the status quo
On the death of an insured, the capital constituted in his life insurance is transmitted to the beneficiary(ies) he has designated outside the estate. This means that he is not taken into account to assess the assets to be shared between his heirs and the share of his assets which must go to his compulsory heirs (children or surviving spouse). This capital is not subject to inheritance tax either, but to a levy of 20% or 31.25%, after a deduction of 152,500 euros per beneficiary.
These specificities can allow you to transmit to your heirs a share of inheritance greater than that provided for by law or to gratify a third party who is not one of your heirs in more generous proportions than with a will. All within a very advantageous tax framework.
Likelihood of this scenario:
weak. It is unlikely that this regime will last in 2022 because it constitutes both a knife-stroke to the
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