Is a life insurance inheritance payment taxable?

Question

Is a life insurance inheritance payment taxable?

Answer 1

$650k?....I think the question is relative to NOW....and not 1990.

Anyway, the answer is no.  Life insurance proceeds are not taxable but they are included in the estate of the owner.  Of which this year if the estate doesn't exceed $2 Million then there is no tax to the estate either.  Either way though the beneficiary isn't responsible for the estate taxes.

Answer 2

Life insurance benefits paid to a beneficiary are not taxable. (That is in the USA)

Answer 3

I have met this kind of situation before,here is the place I found useful.http://insurance.free-onlinetip.info/ins...

Answer 4

If the total estate is over $650,000, there could be tax ramifications on the part that doesn't come from life insurance.  The proceeds from the life insurance policy are not taxable, however.

Answer 5

Okay, here is how it works:  a life insurance policy amount is counted as part of the estate and if the estate is under 2 mil, the estate won't owe taxes on it.   Either way, when the policy is payable to an individual it will not be taxable to that individual.  Same thing applies to accounts that are POD