Have a Tax Question? Ask a Tax Expert
Hello JA Customer,
If the deceased spouse was the owner of the life insurance policy, then the proceeds of the policy become part of the deceased person's estate, regardless of who is actually listed as the beneficiary on the policy. If the deceased person owes a tax debt to the IRS, they can take the proceeds from the life insurance and any other estate assets in order to satisfy this debt.
If this was helpful please press the Accept button. It is the only way we receive any credit for helping with these questions.