OUR ADVICE – It is important to complete it so that the recipients benefit from advantageous taxation during the capital transfer.
It is not mandatory to fulfill the beneficiary clause in your life insurance contract, but it is essential for the beneficiaries to benefit from favorable taxation during the transfer of capital. Each designated beneficiary (by name or status as spouse, child, etc.) can receive up to €152,500 tax-free if the premiums were paid before age 70. If no one is appointed, the capital will be integrated into the drawee’s estate, and the heirs will be taxed on it according to their connection to it (up to 60% after deduction of 1594 euros for e.g. a cohabitant).
The wording of the clause must therefore be carefully considered when signing the contract. And “You must remember to see her regularly according to the development of her family and her needs, which vary over time”, advises Marie-Laure Decobert, wealth engineer at Swiss Life Banque Privée. Marriage, birth, divorce are all opportunities to look back on it.