What Is The General Rule For Taxation Of Personal Life Insurance?
4249 POINTSview profileGary LanePresident, Lane Independent Agency, Southern CaliforniaLife Insurance proceeds to the Beneficiary, are not taxed. The proceeds are part of the estate of the policy holder, and count against any limits that may be imposed on that now deceased policy holder. It is rare that the policy holder would have exceeded their estate tax limits, but if so, it is taxed against the estate. Again, the Beneficiary takes Tax Free. Gary Lane, Registered Representative, New York Life. 949 797 2424. Thank you.Answered on December 22, 2013flag this answer.JPG)
63333 POINTSContact Meview profilePeggy MaceMost of the U.S.Generally, life insurance proceeds are income tax free if left to a beneficiary that is a person or organization. Federal and state estate taxes can be charged if the life insurance proceeds of are sufficient amount to bring the estate over the exempted amount. The estate taxes may be paid by a separate life insurance policy, or taken out of the estate. The policyholder may stipulate whether or not the beneficiary needs to share in paying those.Answered on December 26, 2013+11+1 this answer
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