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2012-04-29 19:25:56
2012-04-29 19:25:56
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Get StartedInsurance proceeds on the life of a


Usually, life insurance proceeds are free from federal taxes. If the beneficiary is an individual person/persons, the proceeds of a life isnurance policy are tax-free. If the beneficiary of a life insurance policy is the "Estate" of the insured person, the proceeds may be subject to estate taxes.


Proceeds are the payments of the benefit. So in other words with Life Insurance it is the death claim amount paid out.


No. Life insurance is paid the the beneficiary named in the policy, your creditors have no claim against the insurance proceeds EXCEPT if the proceeds are paid to your estate.


The Bankruptcy Court has every right to claim the proceeds of a life insurance policy once you are declared by them as insolvent.


If there is a named beneficiary the life insurance proceeds bypass probate and the beneficiary will receive the money. If none is named, the proceeds are paid over to the estate. If the proceeds are paid over to the estate the debts of the decedent must be paid before any assets can be distributed to the heirs.


No. Life Insurance proceeds to beneficiaries are not taxable.


The life insurance benefit will be paid to the deceased's estate.


Yes, life insurance proceeds can be used to pay off a mortgage. Proceeds from a life insurance policy can be used for any reason. The proceeds are paid to the beneficiary, free from federal income taxes. If the policy is a mortgage protection policy it usually pays the money directly to the mortgage holding company.


NO.. unless the policy does not have nomination. Only nominee will get the proceeds of life insurance policy.


Life insurance proceeds paid to a beneficiary is not taxable. However, if the life insurance beneficiary is a trust or estate, there may be some tax implications.


That is the beauty of life insurance! With a properly named beneficiary life proceeds are not taxed and they avoid probate.


If the insurance policy owner did not specify a beneficiary or the beneficiary is deceased, then the life insurance proceeds go to the insured's estate.


Yes, even if incarcerated, you will still receive proceeds from a life insurance policy if you are the valid recipient. They will not be able to receive the proceeds if they were the cause of the insured's death.


Life insurance proceeds are tax exempt (except in rare circumstances). There is no need to defer taxation.


Personal life insurance proceeds are generally paid out free of income taxes as long as the premiums were paid with after-tax dollars. But if a business paid the premiums and deducted the premiums as an operating expense, then the life insurance proceeds would be taxable to the beneficiary.


If the insured has died the proceeds from the insurance will be paid AS STATED IN THE POLICY. The proceeds of the claim are not part of the assets of the deceased's estate.


If you are the named beneficiary of their life policies you do. You can call and ask the insurance companies who the beneficiary is and they will tell you that much. I presume your question had to do with claiming the death proceeds as income. If so, the answer is NO! Life insurance proceeds are received income tax free.


Yes, you can use the life insurance benefits whichever way you see fit.


Life Insurance is the same thing as Death Insurance, If you are insured, and you die, your beneficiary receives the proceeds of the life policy.


When a person insured by a life insurance policy dies while the policy is "In Force", the death benefit is paid to the beneficiary. Life insurance proceeds are usually not subject to state and federal income taxation. But, if there is no beneficiary, the proceeds of a life insurance policy may be included in the estate of the deceased person. Then, it may be subject to state and inheritance taxes. Also, the proceeds may be subject to federal estate taxation. If you own all or part of the life insurance policy at the time of your death, the proceeds may be included in your gross estate for federal estate tax purposes. Also, federal gift taxes and state inheritance taxes may apply to life insurance policy proceeds under certain circumstances.


When no beneficiary has been designated the proceeds of a life Insurance policy are assigned to the probate estate of the deceased insured. It would then be apportioned by the probate court to any surviving heirs.


The beneficiary of a life insurance policy is not responsible for paying for the deceased's funeral cost using the money from the proceeds of the life insurance policy. The estate of the deceased is responsible for paying for the funeral cost from the proceeds of the estate.


If life insurance is payable to a beneficiary other than "the estate of ...[the decedent]", proceeds are payable directly to the named beneficiary and do not normally become part of the estate. However, if the designation of beneficiary of the life insurance policy is the estate of the decedent, proceeds do usually become part of the estate.


No. As in all states, life insurance proceeds avoid probate and flow directly to named beneficiaries.



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