HOW TO COLLECT LIFE INSURANCE BY CAUSE OF DEATH

HOW TO COLLECT LIFE INSURANCE BY CAUSE OF DEATH

When a person who has contracted life insurance dies, the beneficiary of such insurance must claim compensation or corresponding provision. To check if a family member had or not life insurance can be found the log of life insurance, where you can get information about who are the beneficiaries of contracts of insurance with cover of death, as well as existing contracts which contained the deceased person as insured and with what insurance company.

It is necessary to take into account the beneficiary of a death of the insured life insurance should be responsible for paying the tax of successions and donations (ISD). In addition, the amount received by the beneficiary joins the value of the property and rights that form part of its part in the inheritance. In the event that you want to collect life insurance without waiting for the processing of the inheritance, it is usual to make a car partial settlement of the tax by the value of the policy.

This auto liquidation should be also considering that the rest of the inheritance is present and/or auto pay off before six months. It should be noted, in this regard, that the insurance companies cannot afford a policy if the presentation of documentation relating to the auto settlement of the tax is justified.

WHAT EFFORTS MUST BE DONE TO A PARTIAL AUTOLIQUIDACIÓN ISD

To make the partial autoliquidación of the ISD to request payment to the insurer of a life insurance compensation which is beneficiary is necessary to complete and submit the 650 model or model simplified 652 (how tell which I use).

When the insurance policy is earlier than January 19, 1987 and entitled to reductions provided for in the Decree 1018 / 1967, 652 model should be used.

The next step is to enter the amount of the tax debt and provide documentation in the office of tax administration.

HOW MUCH IS THERE TO DECLARE?

About the value of what you have to declare, there are two options. If the benefit consists of money, the value that must be declared is the amount purchased. But if what is going to perceive is a periodic or lifetime benefit, you should declare the present value of the future income.

In either case, the insurance company must certify the amount that needs to be seen, who are beneficiaries, the date of effect of the insurance and the taker thereof.

HOW MUCH DO YOU PAY?

In relation to the amount that must be paid upon the provision of life insurance that are beneficiaries after the death of the insured, the current taxable reductions, which depend on the degree of kinship of the beneficiary with the deceased person and the beneficiary disability can enjoy to the declared value. It can also apply a reduction on the amounts received by the beneficiaries of life insurance if kinship is that of spouse, ascendant, descendant, adopter or adoptee (single reduction by taxable person).

The beneficiaries of insurance contracts signed before January 19, 1987 apply the reductions provided for in the Decree 1018 / 1967.

Once determined the taxable base, apply the rates and coefficients, which can be found in the section on rates and types of printed model 650. Once applied, gets the fee that must be entered.

WHERE DO I PAY THE ISD? WHERE IS THE DOCUMENTATION?

If you are using the model 650, tax is paid at the office of tax administration corresponding to the habitual residence of the deceased.

When the downloaded web forms are used payment can be in any of the credit institutions collaborating, although after the payment you must always present the documentation in the corresponding tax management office.

WHAT DOCUMENTATION IS THERE TO SHOW?

In addition to the form of auto liquidation, must present a certificate issued by the insurance company which includes the amount that will be perceived and an instance (in duplicate) stating where containing the data of the insured and the beneficiary, the name of the insurance company, policy number and capital that will be charged.

WHAT TIMESCALE THERE IS TO PRESENT DOCUMENTATION OF AUTO LIQUIDATION?

The deadline for submission of the autoliquidación is six months from the day following the date of the accrual of the tax. If the last day of this period coincides with a Saturday, Sunday or holiday, this period shall be extended to the first working day following. In any case, not you consider the length of the months.