Legal Question in Tax Law in California

Life insurance inheritance to spouse

My second husband owes about $200,000 to the IRS from back taxes. He incurred this debt before we married. If he passes away and leaves me an insurance policy, can the IRS collect any remaining money he owes from the life insurance I receive? Can I be held responsible for any of his remaining tax debt?


Asked on 7/07/06, 5:13 pm

1 Answer from Attorneys
Donald Field Donald L. Field, Jr., Attorney at Law

Re: Life insurance inheritance to spouse

you are not normally responsible for pre-marital debts. life insurance proceeds (not payable to the decedent's estate) are also not normally subject to any debts of the decedent, although the cash value of the policy (and all other separate property and the community property share of the decedent in community property) is. in addition, if under state fraudulent conveyance law, it can be shown that the deceased taxpayer paid premiums with the intent to defraud creditors, the beneficiary is liable as a transferee for the amount of the premiums paid plus interest.

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Answered on 7/08/06, 9:47 pm


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