Endowment

chrisrsmith

Can I sell my endowment policy to a friend/colleague privately?

holly_hobby

Why would your friend wish to purchase it - whats in it for them?

Why do you wish to sell it?

Hollly

chrisrsmith

I need to sell to raise cash and I'd rather sell to a friend for the same amount that I can get from an 'independent' company.

McKneff

Dont know how you would go about it really.

Normally when an endowment matures the chque is sent to the policy holder.

Have yu had a valuation

chrisrsmith

There are already dozens of companies that buy them off of you already so I suspect they'd get the cheque :T

holly_hobby

Presuming you can firstly persuade a friend or colleague to buy it ...

The policy would need to be legally assigned to the 3rd pty under a Deed Of Assignment.

For them to get anymore than the current SV - they would need to continue paying the premiums.

The sum you have been quoted by the policy buyer - will be based on this fact and others, so if the prospective buyer does not intend to continue with the prems you can not expect the same pch price as quoted by the traded endowment company you have already spoken to.

Therefore in an attempt to match or better the price already quoted, would your friend be prepared to continue paying the premiums over the remaining term. (policy post assignment becomes on the life of another).

Having been assigned, the policy pay out on maturity or surrender may also be subject to income tax- this should be made clear to any 3rd pty you assign/sell it to. (obv professional companies who deal in traded endowments are aware of the tax position)

NB - Although there are various free deed of assignments that you can download, if the policy is being assigned for a return of money i.e sold - a solicitor will need to draw up the deed of assisngment - which will be lodged with the policy & provider.

I have to be honest, I really think your best hope is a professional co who deal in traded endowments - but you have asked for guidance on selling to a 3rd party which I hope I have provided.

Hope this helps

Holly

chrisrsmith

Hi Holly

Thank you for the excellent advice - much appreciated.

I noticed (googling!) that there are companies that will perform the deed of assignment for a fee - are these in effect the same as going to a solicitor?

http://www.netlawman.co.uk/bizdoc/agreement-assign-contract.php?docid=COM333&categoryID=20097

holly_hobby

I would imagine so - get a couple of quotes from local solicitors for drawing up the deed, and compare this with on line providers.

Myself I would not feel comfortable in buying such a deed off line - but if you feel happy buying a DOA off line thats fine.

Again, I do feel selling to a connected party may be fraught with potential probs - i.e if the policy does not peform to expectations etc ... and may result in the loss of a friend if it all goes pear shaped.

I hope if you do find a friend or colleague to pch - they go into it with their eyes wide open as if it goes wrong ... there could be a lot of this .. :eek: :mad: :eek:

Good luck with whatever you choose to do

Holly

holly_hobby

By the way the answer to your new thread for if you use a deed of assignment to sell or gift to a relative is - yes if you are giving/selling the benefit to anyone else it needs assigning.

Gifting is a different deed of assignment to assigning for monetary exchange.

Gifting - your provider will probably have their own (free) forms contact them

Holly

PS - try to keep to one thread on the same subject