If you receive life insurance proceeds, but wish to gift the money to several individuals - can it be taxed?

Question

Individual gift amounts will be less than $10,000.

Answer 1

No; but that has nothing to do with the fact that it is a death benefit. Only the designated beneficiary receives proceeds from the insurance company tax free. It is because the amount you are giving is less than the annual $12,000 gift tax exclusion (it used to be $10,000).

Answer 2

As long as the gift amounts are less than $12,000 per recipient, there is no Gift Tax assessed.

Answer 3

Life insurance with cash value don't pay out cash value when you die! Sure you get face amount that is reduced by any loans and missed premiums, but you lose all the cash value! They say its a good way to build savings! How is that so if you lose it all and it doesn't go to anyone when you die? People say you can borrow it. Why do I want to borrow my own money that I paid for? Cash value = scams!

Answer 4

I dont believe the gift amounts can be taxed. You can gift up to 11,000 per individual per year. Plus you can pay unlimited amounts to to anyone if it is for higher education.

Answer 5

for the reason which you help in making the mortage value i think of that's basically ideal you ask to be comprise interior the choose for that. I understand that your no longer married yet being mutually for the final 5 years interior the domicile you outfitted mutually is a million/2 yours. with a bit of luck this would not reason alot of grief on your loved ones.

Answer 6

First deposit the check you receive. Then you can do whatever you want with the money including giving up to $11,000 (or maybe its up to $12,000 for 2007--check with IRS) to a person or if you are husband and wife $22,000 ($24,000)