My sister passed away in a plane crash and the plane was insured. If the insurance company wrote me a check for $50,000 how much should I be expecting to pay in taxes? I'm so confused....
2007-02-05 09:10:28 · 2 answers · asked by Kara 3 in Business & Finance ➔ Insurance
She was only 11 so she didn't have any bills....
2007-02-05 11:25:50 · update #1
If this payout is due to a life insurance policy, life insurance proceeds are usually not taxable to the beneficiary, so don't worry.
As to the other poster talking about the money going to her estate, that might be true if the money was given to you to settle a claim or lawsuit arising out of the accident. Check with your tax advisor.
I'm so sorry for your loss.
2007-02-05 11:47:38 · answer #1 · answered by Wendy S 4 · 0⤊ 0⤋
Well, I have NO idea why the insurance company would write a check to YOU?!!! Usually, if she is collecting under the insurance for the plane, it's her ESTATE that would be paid. Then the money goes to pay off all her bills, before any of her heirs get anything, and then it becomes part of her estate.
So taxes are going to depend on how big her final estate is.
2007-02-05 18:43:57 · answer #2 · answered by Anonymous 7 · 0⤊ 0⤋