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Author: Frydaze1 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121598  
Subject: Inheritance? Date: 5/10/2004 7:24 PM
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My Grandfather passed away, and I believe he had a $10k life insurance policy with me as the beneficiary (one for each of his grandchildren).

I am currently in the highest federal tax bracket.

I know nothing about this stuff, except that I believe there is no inheritance tax on this (because of the amount, if nothing else).

Will I need to pay income tax on it? Are there ways I could handle the money (once I receive it, assuming I receive it) that will relieve the tax burden? I do NOT qualify for a traditional IRA, so that's out. I could put some of it in my ROTH, and some in DH's ROTH, but that's not my preference.

Any information would be appreciated.

TIA,
Frydaze1
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Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 71773 of 121598
Subject: Re: Inheritance? Date: 5/10/2004 8:04 PM
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Relax, Life insurance benefits are not taxable to the beneficiary. You don't have to declare any of it except the small amount of interest from date of death until they pay you. ed

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Author: Frydaze1 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 71774 of 121598
Subject: Re: Inheritance? Date: 5/10/2004 9:39 PM
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Thanks!

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