Is Life Insurance Taxable To The Beneficiary In Michigan?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Life insurance is generally not taxable to the beneficiary in Michigan or in any other state. Life insurance is passed to the beneficiary income tax free when the beneficiary is a person. If there is interest earned on the proceeds due to taking them in installments rather than a lump sum, the interest on the proceeds are taxable, but not the life insurance benefit. If the amount of the estate is over $5,250,000 in 2013, estate taxes may be charged; contact a tax attorney if this is your situation.
    Answered on August 16, 2013
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