What Happens To Your Isle Of Man Life Linked Policy
If You Die
Before Its Maturity.
This explains the importance of understanding the ownership of your
policy and of making a will.
A. Single or Joint Ownership?
If you and your spouse/partner/friend/relative are joint owners
of your policy then if one of you dies, the policy automatically
becomes owned fully by the survivor upon presentation of the death
certificate to FPIL.
If you wish to add your partner then you need to complete the necessary
If you and your partner are joint owners of your policy but only
one of you is the life assured, then if the life assured dies the
plan will terminate and pay out to the survivor. If you are both
life assured, then it will continue unchanged with the survivor becoming
the 100% owner.
B. Death Of All Owners
The Isle of Man recognises wills made in other jurisdictions. If
you die whilst being the sole owner of your plan or if both the owners
die then the executor of your will must present either:
(a) the original will and a registry-issued certified copy of the death certificate; or
(b) a copy of the Grant of Probate made in the place where the deceased was domiciled when they died, together with a copy of the will, both sealed and
certified by the issuing Registrar. Providing a Grant has been sealed to
the deceased's will in the country of their domicile and the will has been
written in English it is likely that Manx Probate would be granted.
If you die without a will, then things are more complicated, your
heirs will have to appoint a legal representative to apply for an
administration order from the Isle of Man court for Manx Probate.
This would determine who would benefit under the intestacy rules
of the domicile of the individual(s) and the proof for FPIIFS would
be in the letters of administration. It would be for the heirs of
the deceased to obtain letters of administration and not FPIIFS.
The legal representative will be responsible for receiving and distributing
C. Succession Trust
To avoid the problems of not having a will and to simplify them
even if you have a will, you can assign your policy into a Succession
Trust. This is a very simple trust whereby the owner(s) of the policy
are the settlors and the trustees. This means that they still have
full control and benefit of the policy whilst alive. However it is
necessary to appoint an additional trustee in case both husband and
wife die together. This can be a person or company of your choosing
such as a friend, solicitor or accountant etc. If a professional
trust company is requested to be trustee it is likely they will wish
to be sole trustee. Remember that once a policy is assigned to a
trust, all the trustees must sign any change or withdrawal to the
The policy holder then becomes the trustees, but the lives assured
do not necessarily change. Once all the lives assured die, the policy
is terminated and the proceeds are paid to the trust for the beneficiaries.
It is possible to add more lives assured whilst one or more of the
existing lives assured are living (not after they have all died as
the policy terminates at that point), such as children, so that the
policy can continue for them in the trust and does not have to cease.
However adding a life assured if they are UK resident will trigger
a chargeable event for tax purposes