If I name only one child as beneficiary to Ins. Pol. Will he have to pay taxes on it?

Question

I have a small Ins. Pol. to take care of final expenses & small debts. I only named one child (of 3) as beneficiary.

Answer 1

No, life insurance proceeds are not taxed. However you may want to add a secondary beneficiary in the event something happens to your primary. We don't like to think that our children may precede us in death but it does happen.

Answer 2

insurance proceeds are not taxable, but could possibly end up being included in your estate for estate tax purposes.

Answer 3

The answer PepsiLim... is generally correct, but not in your case.  If you have only a small policy AND your other assets would not be enough "to take care of final expenses & small debts" without the policy, then your estate would be too small to be subject to estate taxes, so there will be no tax.