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Author: ffortesque Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124965  
Subject: Life insurance taxes. Date: 8/7/2000 7:35 PM
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Hello all,

My father recently passed away and I was the beneficiary of a $25,000 life insurance policy. I live in California. I'm dividing the money between myself and my sister. When I received the notice of the policy in the mail it gave me two options. The first was to have the taxes taken out before I received the check and the second was to not have the taxes taken out and to do that my self. For some reason I remeber hearing that individuals are not taxed on life insurance policies. Is that correct? Also, if there are taxes to be paid, is it more or less foolish to have them taken out or left alone for me to declare later? And on a seperate note, what would be the best way to give half the money to my sister being that it is over $10,000 that I will be giving her? Any known information you can offer would be greatly appreciated.

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