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Level 5
June 24, 2024
Question

Life Insurance

  • June 24, 2024
  • 1 reply
  • 11 views

Taxpayer was the beneficiary of a life ins policy.  Tp was under 18 when it was taken out, and now 24, so the insurance company says her mother has to get the distribution and then give it to the tp.  $125K 

Will any of it be taxable to the tp?  Btw, its has not been distributed yet, it is still at the insurance company.

 

Thanks in advance.

 

Don

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1 reply

IRonMaN
Level 15
June 24, 2024

Only the interest portion earned from the date of death until it is paid.

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