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Life Insurance Death Benefits - Taxable or Non Taxable?
One policy, I was just a beneficiary of whatever dollars. The other policy, I was the owner, as well as the beneficiary of a policy on my dad. He transfered the ownership to me in 1994. I paid no premiums. Either it was paid up or the dividends paid the premium, I'm not sure. Now the death benefits paid -- Taxable of non taxable?
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Death benefits of a life insurance policy are not taxable to the beneficiary.

Pete
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Life Insurance Death Benefits ARE taxable if the beneficiary did not pay the premiums.
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Life Insurance death benefits are NOT taxable. Only in rare situations are death benefits ever taxable. The beneficiary is irrelevant. Seek help from a professional experienced in life insurance.
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You need to investigate whether or not the trensfer of your dad's policy to you in 1994 created a 'transfer for value'. This is short for 'transfer for valuable consideration' and if you did this, the death benefit could be taxable. There are exceptions to the transfer for value rule, so check them out. Generally the exceptions are transfers to the insured, to a partner in which you have share a legal partnership, and there are two more I believe. Again, seek professional insurance advice.
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