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Beneficiary doubt

Discussion in 'Life Insurance, Annuities & Other' started by Kevan, Oct 22, 2018.

  1. Kevan

    Kevan Law Topic Starter New Member

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    Jurisdiction:
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    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
     
  2. army judge

    army judge Super Moderator

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    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.
     
  3. Kevan

    Kevan Law Topic Starter New Member

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    I am in North Carolina for work, hence I am posting from here! Thanks for your help anyway :)
     
  4. zddoodah

    zddoodah Well-Known Member

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  5. Kevan

    Kevan Law Topic Starter New Member

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

    zddoodah Well-Known Member

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    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.
     

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