Beneficiary doubt

[Kevan]

Jurisdiction

Texas

Hi everyone,

This website has been helping me a lot lately but I can't really find an answer to this question..

What is the upon death tax difference of making a Revocable Living Trust (Texas) the beneficiary on my Term Life insurance policy versus a family member as the beneficiary?

Any help would be highly appreciated!

Kevan

 

[army judge]

Hmm, you inquire about Texas, yet you're posting from NC.

If you want tax or trust advice, you need to consult a CPA, tax attorney, or someone at a bank who administers trust accounts.

Life insurance proceeds are USUALLY not taxable.

Again, for specific tax advice, ask a tax attorney.

For advice about a SPECIFIC life insurance policy, speak to the insurer or your agent.

 

[Kevan]

I am in North Carolina for work, hence I am posting from here! Thanks for your help anyway

 

[zddoodah]

Not really sure what your question means, but life insurance proceeds are generally not taxable income.

 

[Kevan]

Even if the Beneficiary is a Revocable TRUST...i.e. when the Trust receives the proceeds, will it be taxed?

 

[zddoodah]

My prior statement was, I think, pretty clear. Click the link, and the trustee should consult with a tax professional if he/she has any concerns about this.