Life ins. question?

Question

do i have to pay taxes on a life ins. policy that i recieved after my parent died. Texas

Answer 1

Life insurance proceeds aren't taxable unless they're held in a retirement account (which they technically could be).

They may be included in the estate as well depending on the ownership, but the estate taxes would be owed by the estate not by you.

So 99% of the time the answer is just 'no' but there are exceptions.

Answer 2

If you are the beneficiary, you do not pay taxes on the procedes.

Answer 3

Life insurance benefits are not taxable income.