Policies for L and D - LA Flashcards
A1 - LA
Life policy on life of the deceased ceded/donated to spouse/child ito:
an ANC or PNC (registered at the deeds office)
LA = excluded
A2 - LA
Life Policy on the deceased with a nominated beneficiary that is not the estate - maturity value was paid directly to the beneficiary
LA= Excluded
A3(i) - LA
Life policy on life of the deceased where there is not a nominated beneficiary or the estate is the nominated beneficiary or if the nominated beneficiary predeceased the deceased
LA = included (claim ifo estate - record maturity value)
A3(ii) - LA
Life policy on life of deceased. Maturity values is used to settle a liability = credit cover policy
LA = included (claim ifo estate - record maturity value); claim against estate liability
B1 - LA
Reason: to acquire an assets (ie shares) of the deceased
Life policy taken out ito of a buy and sell agreement by NON partner/NON shareholder/NON director
LA = Record purchase price of asset (ie shares) DO NOT record the maturity value
B2 - LA
Reason: To acquire an asset of deceased
Life policy taken out in terms of a buy and sell agreement by partner, shareholder or director
LA= Recored the purchase price of asset (ie shares) DO NOT record the maturity value
B3 - LA
No reason: will not acquire an asset of deceased (no buy and sell agreement)
Life policy taken out by another
LA: excluded
B4 - LA
Reason: it might not be easy to replace the services of the deceased in business = Key Man Policy
Life policy taken out by business
Life police was taken out to cover potential losses as if key person dies the business could suffer severe losses.
LA: excluded
C1 - LA
Life policy has a surrender and maturity value (the policy has either been cashed or ceded)
LA: included. Record surrender value as claim ifo of estate; if reduced to cash (divestment note: CASH - estate bank account); if ceded to another (Divestment note: awarded to….)
