Andy,It's the difference between income taxes and estate taxes... It's true that the beneficiaries of insurance generally pay no income taxes on their inheritances. Of course, life insurance is not unique in that regard, in many cases, beneficiaries of any inheritance pay no income taxes on the inherited amounts. (There are exceptions, of course... Always exceptions. It's the tax code, after all.)The deceased person's estate, however, may owe estate taxes on the insurance if the deceased 'owned' the insurance. See http://www.insuranceiq.com/columns/estate/estate20020111.asp , or if you want to get detailed about it, see IRC §§ 2042 and 2035. -Chuck
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra