2023-11-26 07:00:05
The beneficiary clause of a life insurance contract must be carefully drafted and regularly reviewed. However, it can sometimes be risky to modify it.
For example, in the case of a vulnerable person (sick, elderly, disabled, under the influence of those around them, etc.), if the beneficiary clause is modified, they may, upon their death, be denounced by their heirs or by beneficiaries feeling wronged.
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This is often the start of a dispute that could lead to the blocking of funds with the insurer, pending an agreement between the parties or the judge’s decision. There is no specific age, but the older the person, the higher the risk of vulnerability.
Tax adjustment
Another case: that of the risk of a tax reclassification, when the state of health of the subscriber suggests death in the short term and, concomitantly, the clause has been modified with the aim of reducing inheritance tax.
The tax administration may challenge this practice and qualify it as an abuse of law, an indirect donation or a disguised donation, and therefore, redress the beneficiaries concerned.
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Therefore, it is preferable to settle your property affairs when your state of physical and mental health cannot be called into question and if the objective sought is not primarily to evade all or part of the tax.
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