The beneficiary clause in the event of death… This is the kind of box that we check without thinking when taking out life insurance. Often goes for the proposed first line, which provides that the capital will be paid to the spouse or, if he is no longer of this world, to the children. Quickly filled, quickly forgotten. Result: the provisions may not be adapted to the situation of the insured and his family.
This beneficiary clause, however, deserves much better than a few seconds of attention. “It’s the equivalent of a will, recalls Clémence Rytlewski, founder of the consulting firm Ambacia Heritage. It is this clause, too, which makes it possible to take advantage of the tax advantages of life insurance, because without it, the capital falls into the estate and is taxed like it. Finally, it allows you to move away, if necessary, and to a certain extent, the constraints of the civil code linked to the hereditary reserve. “
First reflex: it is essential to think carefully about the people you want to promote with the life insurance money and the interest of using life insurance to do so. “You are free to designate the one or those you want”, recalls Nathalie Bardet, wealth engineer at Financière Arbevel. But the choice of the spouse as beneficiary, for example, eliminates any tax interest in life insurance in terms of inheritance: the surviving spouse is not subject to inheritance tax, he will logically not be able to benefit exemptions.
A list of priorities
Isn’t it better to share it with other heirs who will be subject to taxes, such as children, grandchildren, or even people? with which you are not related and which are taxed at 60% on inheritance?
We must also seek to optimize the clause by taking advantage of all the flexibility it provides. It is possible, for example, to name several beneficiaries who will share the capital, equally or unequally, while the standard clauses provide for everything to be paid to the first living beneficiary.
In addition, several ranks of beneficiaries should be provided. The objective is to ensure that there will be a loved one to take advantage of the capital. All you have to do is make a list of your priorities, indicating, between each row, the words “otherwise”. Example of wording: “my children, failing which my grandchildren, failing which my heirs”. With this formulation, if your children die before you, it is their own children who will receive the sums, and if none of them is alive when the day comes, it is the heirs defined by law (the great-grandchildren). children, nephews and nieces, etc.) who will benefit.
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