Is Life Insurance Taxable To The Beneficiary In North Carolina?
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaGenerally speaking, beneficiaries receive tax free death benefit proceeds from a life insurance policy at the demise of the policy insured. There are circumstances where life insurance death benefit proceeds are exposed to estate tax or in rare cases the alternative minimum tax. Most states have lower exemptions for estate transfer tax than the federal unified credit.Answered on September 10, 2013flag this answer.JPG)
63333 POINTSview profilePeggy MaceMost of the U.S.When the Beneficiary of a life insurance policy in North Carolina receives life insurance proceeds upon the death of the Insured, normally, there is no income tax imputed. Federal estate taxes will apply for estates over $5,250,000. The state estate tax in North Carolina was repealed in 2013, so that residents of North Carolina who pass away after 1-1-2013 are exempt from state estate taxes.Answered on September 10, 2013flag this answer
12 POINTSview profilejanice hendricksInsurance Broker, Janice Hendricks Agency,Generally speaking Most insurance policies are not taxed if the beneficiary takes it out in a lump sum. There are situations where life insurance death benefits are exposed to estate tax or very few cases minimum tax depending on the State. The best way to check with your Tax adviser when its is used for Long term care purposes or needs not specific to insurance needs.Answered on August 2, 2014flag this answer
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