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You should have your mother leave the insurance to a trust and then you or your family as trustee, then the IRS cannot get to the money since it will not be yours. Additionally you may receive income from the trust. Your family could "spoon feed" you. You should consult an ESTATE PLANNING attorney to see how to set this up. rw
The insurance company cannot be forced to make a check payable to the IRS or any creditor. But if the person who receives the proceeds owes money to someone like the IRS, it won't be long before they will be forking it over. The trust described above can protect the money from creditors until it's paid out, but once the money is doled out, it's fair game for creditors.
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Can the IRS seize your term life insurance benefits?
Yes. They can seize anything.
Can the IRS seize a beneficiary's death benefit for tax arrearages owed by the deceased?
No, death benefits from a life insurance policy which has a named beneficiary is not subject to attachment by the IRS, state tax officials, judgment creditors, etc.
Can life insurance benefits be seized by the IRS for back taxes?
Almost any asset you have can be seized by the IRS on a claim or judgement.
Can the debtor of a beneficiary have IRS seize the money paid to beneficiary from a family members life insurance?
Yes, the debts must be paid before the estate is divided up between beneficiaries.
Can the IRS take a life insurance check?
Yes
Where can the federal definition of life insurance be found?
irs regulations
When is IRS Form 712 required?
IRS forn 712 is tax deduction form in case of LIfe insurance statement
Can the IRS seize a pension if it is your only income?
Yes some pension income can be seized by the IRS.
Can you receive disability benefits from a job and from the IRS at the same time?
The IRS doesn't pay disability benefits; they collect taxes. You may or may not be able to collect disability benefits from a private insurance policy and the Social Security Administration at the same time, but if you can, it's likely the income from one would be reduced to offset some or all of the income from the other. Check your insurance policy or consult with an insurance agent for more information.
Can Any Government agency take benefits im going to receive from my fathers life insurance policy?
Yes. ------------------- They certainly can. If you have liens filed against you by any government agency (especially IRS) or there are court orders for you to pay certain obligations, they can, and will, lien any inheritance and/or insurance money.
Can the IRS seize death benefits owed to the beneficiary who owes back taxes?
Sure. Death benefits do not enjoy any preference when the beneficiary owes back taxes. They can also garnish your wages and/or Social Security Benefits. You best bet is to set up a payment plan with then and get the back taxes paid.
Can the IRS seize a jointly owned vehicle?
Yes, the IRS can seize a jointly owned vehicle if one of the co-owners owes taxes. They have the authority to enforce tax collection by levying assets, including jointly owned property.
