Legal Question in Tax Law in Illinois

tax on insurance money

Hi there,

my wife recently passed away..

she has around

1)$50k in her bank accounts...

2)I am expecting around $105K as life insurance claim

3) and she had 401(K) with her employer around $3,000

we dont have any children...so legally i m the sole receiptant of all these money..

please advise if I have pay tax on any of the above money I receive?

sincerely appreciate your response...


Asked on 2/07/09, 7:06 pm

2 Answers from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: tax on insurance money

You do not owe Federal Estate Tax or NJ Inheritance Tax. The Bank account and life insurance will be transferred to you without tax. The 401(k) money can be rolled into your IRA. If you withdraw it, you will have to pay income tax on it.

I hope this helps!

Ron Cappuccio

http://www.SaveYourEstate.com

Read more
Answered on 2/07/09, 8:07 pm
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: tax on insurance money

You do not owe Federal Estate Tax or NJ Inheritance Tax. The Bank account and life insurance will be transferred to you without tax. The 401(k) money can be rolled into your IRA. If you withdraw it, you will have to pay income tax on it.

I hope this helps!

Ron Cappuccio

http://www.SaveYourEstate.com

Read more
Answered on 2/07/09, 8:07 pm


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