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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My sister & I shared a bond with Aviva. My sister passed away

Customer Question

My sister & I shared a bond with Aviva. My sister passed away 2 weeks ago & when her family notified her death they were informed that her half of the bond had been transferred to me. This was never intended by either of us and I have no idea how to put this right.
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Can you tell me what your intention was or is please.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
We thought the bond would be half for each family and I would l would like my neice and nephew to have a fair share.
Expert:  TonyTax replied 1 year ago.
Thanks. Shall I post my answer before I call you?
Customer: replied 1 year ago.
Yes please
Expert:  TonyTax replied 1 year ago.
OK. It will take a little time.
Expert:  TonyTax replied 1 year ago.
You will need to talk to the bond issuing company as it appears that it was written in such a way that the surviving sibling became the owner of the deceased sibling's share on their death. Depening on what the insurance company says, you could: 1 Make a deed of variation in your sister's will stating that her share of the bond should be left to whoever you want it to be left to. So long as all parties affected by the change agree, it can go ahead. You have two years from your sister's death to execute a deed of variation. 2 You could gift or assign half the bond to your family as you wish so that they are named beneficaires. Such a transaction would be a potentially exempt transfer for Inheritrance Tax purposes. There are no Capital Gains Tax implications unless the bond is sold to a third party. I hope this helps but let me know if you have any further questions. Let me know when you are ready for me to call.
Customer: replied 1 year ago.
please call
Expert:  TonyTax replied 1 year ago.
Take a look at this: https://www.gov.uk/government/publications/gains-on-uk-life-insurance-policies-hs320-self-assessment-helpsheet/hs320-gains-on-uk-life-insurance-policies-2016