Life insurance proceeds are tax as follows, generally. Nothing is simple about taxes, so you should consult your tax attorney for specific cases.
1. Life insurance is generally not charged income tax if the beneficiary is not the estate.
2. Life insurance proceeds are considered part of the estate for state and federal estate tax purposes. This is if the deceased had incidences of ownership in the policy and there was no remaining spouse.
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1. Life insurance is generally not charged income tax if the beneficiary is not the estate.
2. Life insurance proceeds are considered part of the estate for state and federal estate tax purposes. This is if the deceased had incidences of ownership in the policy and there was no remaining spouse.