whats more tax feasible?buying life insurance for my father and naming myself as a benficary or sum1 else?

Question

conisdering the estate and death taxes etc

Answer 1

If you name someone else as the beneficiary, they'll get the money so they would have to pay taxes on it, not you. But you wouldn't get the payment.

Answer 2

The beneficiary is the person or persons who is named on the life insurance policy to receive the death benefits from the policy.

If you are not named as the beneficiary, you would not receive the benefits, nor would you pay any taxes on the death benefits from the life insurance policy.

When a person insured by a life insurance policy dies during the term of the policy the proceeds are paid to the beneficiary or beneficiaries.

Life insurance death benefit proceeds are usually not subject to state and federal income taxation. But, if there is no beneficiary, the death benefit proceeds of the life insurance policy may be included in the estate of the deceased. Then, it may be subject to state, federal and inheritance taxes.

Also, the proceeds may be subject to federal estate taxation.

If you own all or part of the life insurance policy at the time of your death, the proceeds may be included in your gross estate for federal estate tax purposes.

Also, federal gift taxes and state inheritance taxes may apply to life insurance policy proceeds under certain circumstances.

You may want to consult a tax advisor regarding your questions about any estate, income and gift taxes related to any life insurance policies you own or are considering buying.

Also, your insurance agent should be able to tell you if your life insurance policy benefits will be taxable.

Finally, different taxes may apply to the benefits paid by your life insurance policy if the death benefit is paid to the beneficiary in installments, instead of as a lump sum. The interest portion, if any, of each installment is usually treated as taxable to the beneficiary at ordinary income tax rates, while the remaining principal portion is tax-free.

I hope that helps! Take care and best of luck!

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