Assurance Vie after maturity

[allanb]

I have an AV which is about to mature, i.e. reach its 8th anniversary.  I don't need the money immediately, and I have no particular reason to change the investment holding.

If I simply do nothing, does anyone know what the status of the contract will be?  Will it continue to to be subject to the special AV rules concerning income tax and inheritance, or will it become an ordinary investment with no special characteristics?  

[parsnips]

[quote user="allanb"]I have an AV which is about to mature, i.e. reach its 8th anniversary.  I don't need the money immediately, and I have no particular reason to change the investment holding.

If I simply do nothing, does anyone know what the status of the contract will be?  Will it continue to to be subject to the special AV rules concerning income tax and inheritance, or will it become an ordinary investment with no special characteristics?  

[/quote]

Hi,

     Normally contracts are either "à vie" or for a set term, usually 8 years , but in the latter case they are usually tacitly renewed at each anniversary by the company, unless you request otherwise --check your contract, and if written for a set term inform the company that you wish to continue it indefinitely (just to be sure).

     They get the full tax advantages at 8 years onwards and retain all other features special to AV.   You can take partial withdrawals and make further investments at any time.  

[allanb]

Thanks.