Estate planning: the inclusion of the proceeds of a life policy when the accrual is calculated

Abstract

English: Life policies play an important role in estate planning, and the correct application of the proceeds is necessary to determine the effect on the accrual calculations at the dissolution of a marriage (upon the death of the first-dying spouse) in order to determine the correct insured amount required. The accrual of either spouse is calculated at the dissolution of the marriage, which is at the moment of death. If the proceeds of a life policy form part of the net estate at the moment of death, then the proceeds are included in the net estate of the spouse when the accrual is calculated. Consequently, the right to payment should vest at the moment of death for the proceeds to be included. Taking into account the different ways of structuring a life policy (policyholder, insured and nominated beneficiary), the moment that the right to payment vests will depend on who is entitled to the proceeds: the policyholder or a nominated beneficiary.

Afrikaans: Lewenspolisse speel ’n belangrike rol in boedelbeplanning en die korrekte toepassing van die opbrengs is noodsaaklik om die effek op die aanwasberekeninge te bepaal by die beëindiging van ’n huwelik (by die dood van die eerssterwende gade) om die korrekte versekerde bedrag te bepaal. Die aanwas van beide gades word bereken by die beëindiging van die huwelik wat die oomblik van dood is. Indien die opbrengs van ’n lewenspolis deel vorm van die netto boedel by die oomblik van dood, dan sal die opbrengs ingesluit word by die netto boedel van die gade wanneer die aanwas bereken word. Gevolglik moet die reg tot betaling vestig by die oomblik van dood vir die opbrengs om ingesluit te word. Met inagneming van die verskillende maniere wat die lewenspolis gestruktureer kan word (polishouer, versekerde en genomineerde begunstigde), sal die oomblik wat die reg tot betaling vestig, bepaal word deur wie geregtig is tot die opbrengs: die polishouer of ’n genomineerde begunstigde.