Can The IRS Go After Life Insurance Proceeds?

1. 

   4470 POINTS

   view profile
   Brandon Roberts

   Owner, The Insurance Pro Blog,

   Yes, there are no financial products or assets that are fully protected from any US Federal entity if you are US citizen.  The IRS has the ability to seize or attempt to seize life insurance proceeds and cash values if you have an outstanding tax liability with the United States Government.

   Answered on August 22, 2013

   flag this answer
2. 

   63333 POINTS

   view profile
   Peggy Mace

   Most of the U.S.

   When speaking of the life insurance death benefit that is left to a person, the IRS generally cannot seize the life insurance proceeds from the beneficiary. There are exceptions, such as if the beneficiary filed jointly with the deceased person who owes money to the IRS. The beneficiary being a minor may also present a problem. But as long as the death benefit does not to to the estate, but to a person who is not implicated in that debt, the IRS cannot take the death benefit away from you in most cases.

   Answered on September 5, 2013

   flag this answer
Did you find these answers helpful?
Yes
No
Go!

Add Your Answer To This Question

You must be logged in to add your answer.