Taxes Consolidation Act 1997 section 785

Approval of contracts for dependants or for life assurance

Section 785 allows Revenue to approve annuity contracts whose main purpose is to provide an annuity for the spouse, civil partner or dependants of an individual, or a lump sum payable to the individual's personal representatives on death.

• Revenue may approve a contract whose main benefit is an annuity for the individual's spouse, civil partner or dependants commencing on the individual's death, or whose sole benefit is a lump sum payable to the individual's personal representatives on death before age 75.
• Conditions for approval include that any annuity to the individual must commence between ages 60 and 75, annuities must be payable for life only, and no annuity may be surrendered, commuted or assigned; however, Revenue may waive one or more of these conditions.
• An annuity provider includes an EU-authorised insurance undertaking, or a UK-authorised insurer, that is not resident in the State or does not trade through an Irish branch.
• Trust schemes providing equivalent benefits for groups of individuals may be approved in the same way, and income from the investments of an approved trust scheme is exempt from income tax.