Death Benefit

Forum|Forum|4 years ago
February 28, 2022
1 reply
20 views

Decedent's representative received two Death Benefit checks from insurance company. Should they be listed as income on 1041?

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This topic has been closed for replies.

Best answer by sjrcpa

Are you sure they were life insurance? One point of having life insurance is that you name a beneficiary and it stays out of your estate. The beneficiary designation is done when you buy the policy.

Insurance companies sell other products which may result in taxable income. Were 1099-Rs issued?

IRonMaN

Level 15

If you mean they got two life insurance settlement checks, they aren't taxable. However, any interest paid along with the life insurance proceeds are taxable. Were the checks actually made out to the estate or to beneficiaries?

Slava Ukraini!

M

moonpetty58Author

Level 4

These two checks were made out to the estate of decedent (in Decedent's name, in care of representative.

sjrcpaAnswer

Level 15

Are you sure they were life insurance? One point of having life insurance is that you name a beneficiary and it stays out of your estate. The beneficiary designation is done when you buy the policy.

Insurance companies sell other products which may result in taxable income. Were 1099-Rs issued?

The more I know the more I don’t know.

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