My mom died in April of 2013 and left me 70,800 dollars from a life insurance policy. Will I be taxed on this and how much?

Asked 5 months ago - Bolingbrook, IL

inheritance

Attorney answers (5)

  1. Judy A. Goldstein

    Contributor Level 20

    5

    Lawyers agree

    Answered . Generally, life insurance death benefits that are paid out to a beneficiary in lump sum are not included as income to the recipient. You should discuss your particular situation further with your tax preparer or a tax attonerey

  2. Sarah Elizabeth Buck

    Contributor Level 10

    3

    Lawyers agree

    Answered . Typically, a beneficiary of life insurance proceeds does not have to pay income tax on the amount received. If you have further questions, contact a CPA or tax professional.

  3. Robb Adam Longman

    Pro

    Contributor Level 13

    3

    Lawyers agree

    Answered . Usually life insurance proceeds are not taxable to the recipient. The estate may have taxes to pay on the life insurance, but it depends upon the policy ownership and size of the estate.

    This answer is based on general legal principles only and is not intended to provide specific legal advice. This... more
  4. Henry Repay

    Contributor Level 16

    1

    Lawyer agrees

    Answered . I agree with the earlier answers concerning taxes. While I do not know your situation, I would also recommend that you open a separate account for these funds. Do not mix any other funds in the account. Use these funds as a last resort. Once you use any funds from the account, do not replenish the account. Try to keep track of where the funds are spent, particularly for larger expenditures such as homes, home improvements, vehicles. Consultation with a financial planner or non-profit financial counseling agency is also advised.

    The scope of this space does not afford an opportunity to adequately advise you. The response provided is intended... more
  5. Christian K. Lassen II

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . If you were the beneficiary, there would be no income tax, however, if benefits went to the estate, there would be estate tax.

Avvo instant logo@2x

Need an answer to your questions within 15 minutes?

  • 30-minute phone call
  • Ask any questions
  • $99 flat fee
  • Money-back guarantee
Talk to an attorney now

Can't find what you're looking for?

Ask span5@2x

Ask a question on our public forum.

Ask a lawyer
Or@2x
Instant span6@2x

Have an attorney contact you privately.

Right now.

Icon lock@2x
Secure conversation. Your details remain between you and your attorney.
Icon clock@2x
Get an answer guaranteed. Be assured that a lawyer will contact you to help with your legal issue.
Start your session now