Saturday, December 10, 2011

If I am the beneficiary of a deceased person's life insurance, is the amount considered income, thus taxable?

Usually a life insurance beneficiary is not taxed on death benefits. But if the deceased owned or in any way controlled the policy [even if just to set beneficiary(s)] it is considered part of their gross estate for figuring out if their estate owes tax. If you owned the policy, you may need to check what the first answer discussed.

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