Can the IRS seize life insurance benefits?

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2015-07-15 20:49:47

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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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Q: Can the IRS seize life insurance benefits?
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Related questions

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.

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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 the IRS levy a vehicle that is financed in the name of the innocent spouse The tax liability was before marriage?

No, If this was liability under the individual while he was single, then his/her current spouse will not incur that liability. Secondly, the IRS can't "levy" and asset per say;they normally seize bank account,wages,IRA's or Social Security Benefits. If the vehicle is financed, the IRS isn't going to levy (seize) it. The bank is holding the title and is listed as the first lien holder on that title. If the IRS tried to take it, the bank would just assert their position as the senior secured creditor and take the car themselves. The Internal Revenue Code says that the IRS cannot levy / seize an asset if there would be no net proceeds to the IRS from the seizure. They would get nothing in this case, therefore they will not seize the car.

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.

What exactly does an IRS levy entail?

An IRS levy means that if one owes money to the IRS they have the ability to seize ones property or belongings in order to cover the debt that is owed.

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