Can my mam claim tax back on life insurance?

torcherer

My dad passed away last year, he had life insurance, the amount due to my mother was 70,000. She was taxed 41%, so only recieved roughly 40,000. Can she claim tax back for the rest?

The insurer is Zurich, and this is all I could find about it on their site:
“Whenever monies are paid out of your policy (on death, encashment, partial encashment or by assignment), tax is payable on any gains made. A tax on gains will also be payable every eight years. Zurich Life will deduct the tax from your policy and pay it to the Revenue Commissioners. The rate of tax is currently 41%. The death benefit may also be taxable as part of your estate in the same manner as the other assets of your estate.”

Rulmeq

https://www.ccpc.ie/consumers/money/insurance/life-insurance/#Policy

Will your life insurance benefit be taxed?

Life insurance benefit is paid out as a tax-free lump sum. However, anyone who inherits the money after your death, depending on their relationship to you, may have to pay inheritance tax. How much tax they pay depends on how much they inherit and Revenue rules at the time of your death. You can buy a specific type of life insurance policy, to provide a tax-free lump sum to cover any inheritance tax liabilities that your beneficiaries may have when you die.

Calahonda52

torcherer wrote: »

My dad passed away last year, he had life insurance, the amount due to my mother was 70,000. She was taxed 41%, so only recieved roughly 40,000. Can she claim tax back for the rest?

The insurer is Zurich, and this is all I could find about it on their site:
“Whenever monies are paid out of your policy (on death, encashment, partial encashment or by assignment), tax is payable on any gains made. A tax on gains will also be payable every eight years. Zurich Life will deduct the tax from your policy and pay it to the Revenue Commissioners. The rate of tax is currently 41%. The death benefit may also be taxable as part of your estate in the same manner as the other assets of your estate.”

You need to clarify exactly what kind of policy your late father had.
Based on the above, it was not pure life cover, but some sort of an investment product that MAY have had a life cover element.
You also need to ask Zurich for the math on the tax deducted, which was based on 41% of 70K, which assumes that no capital was invested.
It does not stack up IMO