Is Life Insurance Considered Inheritance?
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaLife insurance death benefit proceeds pass to the beneficiaries generally tax free. Those proceeds can be considered an inheritance, along with any other assets that are passed down to the next generation. The leverage of life insurance can create an inheritance for children and grandchildren, even charitable organizations. That's life insurance!Answered on July 30, 2013flag this answer.JPG)
63333 POINTSview profilePeggy MaceMost of the U.S.When speaking in terms of inheritance taxes, yes, life insurance is considered inheritance if the deceased had "incidences of ownership" of the policy. In other words, if deceased owned the policy, and adding the policy to other assets brought the value of the estate over the limit that is exempt from estate taxes, estate taxes and inheritance taxes would need to be paid.Answered on July 30, 2013flag this answer
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