Will the insurance money be taxed?
My wife recently passed away and she has about $75,000 in her various bank accounts and an insurance claim worth about $150,000. Will I have to pay taxes on any of this?
Answered By: E. Ray Critchett, Zaino & Humphrey, LPA
The tax ramifications of life insurance can be very complex as you are learning. Proceeds paid by the insurer upon the death of the insured may not be included in gross income for federal and state tax income purposes however, they may be treated differently if they are included in the estate of your wife. I would recommend scheduling an appointment with a tax attorney and/or your CPA to obtain additional information concerning these matters.
You may contact our office to schedule an appointment if you have further questions or if you need assistance with this issue. Thank you.
Answer Applies to: Ohio
Replied: 9/7/2010
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
You may contact our office to schedule an appointment if you have further questions or if you need assistance with this issue. Thank you.
Answer Applies to: Ohio
Replied: 9/7/2010
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Law Offices of James C. Bechler, A.P.C.
Generally, any funds received due to death are not taxable. Further, an estate less than $100,000 needs no probate. In addition, proceeds from a life insurance contract are outside the $100,000 limit. 2010 will be the only year that there would be no taxes due from any estate- no matter how large.
Answer Applies to: California
Replied: 8/26/2010
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 8/26/2010
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
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