Legal Question in Wills and Trusts in Ohio
Who pays taxes on life insurance proceeds?
A decedent bought life insurance during his lifetime for an adult child. After the passing of the decedent, the beneficiary of the insurance policy was paid. Who or what source is responsible for taxes on the insurance proceeds? Thank you.
Asked on 11/09/02, 10:09 am
1 Answer from Attorneys
Frank Rozanc
Frank J. Rozanc, Esq.
Re: Who pays taxes on life insurance proceeds?
If a named beneficiary is the recipient of the policy, it is not taxable for estate tax purposes, and only the interest payable due to delay in paying the claim is taxable under income tax, not ther principal. In any event, the beneficiary would be responsible.
Answered on 11/09/02, 5:55 pm
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