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My mom set up a testamentary trust for her property 6 years ago. Two months later she suffered a fall with resulting brain injury. The property has been sold in the past 6 months-can the proceeds go to her care or must it go to the beneficiaries. ?
Wiki User
∙ 15y ago
Her bills need to be paid first.
Wiki User
∙ 15y ago
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Are life insurance benefits subject to federal income tax?
No. Life Insurance proceeds to beneficiaries are not taxable.
Do you need to pay tax for insurance death claim?
No. Death proceeds are received income tax free by beneficiaries.
Texas is a community property state. Your husband named his sons as beneficiaries on his life insurance policy. Is the surviving spouse entitled to any portion of the proceeds?
Life insurance is a complex issue in community property states. Even if your husband has named beneficiaries, you may be entitled to an interest in the proceeds. See the link provided below for a very informative publication that you can read in its entirety. There is a section regarding beneficiaries other than the spouse.
A parent dies and leaves two children as equal beneficiaries to his estate in his will. One of them is listed as a recipient of an insurance policy. Must he split the proceeds of the insurance policy?
No. The life insurance proceeds pass outside of the parent's will.
You have an executor who has been advised of a parcel of shares by the beneficiaries and has changed them into their name but will not distribute the proceeds nor talk to the beneficiaries what can we?
You can report the behavior of the executor to the court and request they be replaced. The executor should be available to the beneficiaries and should provide answers to any questions about the execution of the estate. If they will not distribute the proceeds they should provide an explanation. Perhaps it is too soon. If so, they should explain the timetable for distribution. You should call the attorney who is handling the estate for an explanation.
What is the difference between a primary beneficiary and a tertiary beneficiary?
A tertiary beneficiary is only entitled to proceeds if the primary and secondary beneficiaries are no longer living.
Can a beneficiary rent out estate real property and keep the proceeds to himself at the expense of other beneficiaries?
If that beneficiary inherited the property by himself- yes. If that beneficiary inherited the property along with other beneficiaries- no. Remember that the estate must be probated if it includes real estate in order for legal title to pass to the beneficiaries.
Can Mother-in-laws collect insurance proceeds before children?
insurance proceeds are distributed to named beneficiaries In addition an insurance policy of a deceased that does not have a named beneficiary will be included in the probate procedure and the state's probate law of succession will apply.
Are life insurance benefits subject to probate in Maryland?
No. As in all states, life insurance proceeds avoid probate and flow directly to named beneficiaries.
Does the beneficiary of a life insurance policy have to pay taxes on the proceeds?
The answer to the question of whether or not beneficiaries have to pay taxes on the money received from life insurance policies is: no they will not have to.
Is a life insurance policy subject to irs collection?
It depends. Life insurance proceeds are not subject to income taxes to the beneficiaries, at all. However, if the policy is owned by the deceased person, then those proceeds can become part of the estate and be taxed in that manner. If you want to avoid taxation, completely, make sure that the owner and beneficiaries are different than the subject of insurance. Hope this helps! MyInsuranceXpert
What if the executor doesn't pay the beneficiaries of a life insurance policy?
The proceeds of a life insurance policy are paid directly to the beneficiaries without going into the estate of the person. The only way that life insurance proceeds become part of an estate is if the the beneficiary is listed as "Estate of the Insured". In this case any expenses of the estate are to be paid out before the heirs receive a share. If there are beneficiaries on the policy, the life insurance company will pay the beneficiaries directly.
