Welcome, THANK YOU for using Just Answer. My goal is to help make your life...a little...LESS taxing.
I'm sorry about the passing of your wife. In brief, the following applies.
Generally, if you receive the proceeds under a life insurance contract because of the death of the insured person, the benefits
are not includable in gross income
and do not have to be reported:
you receive would be taxable and would need to be reported just like any other interest received.
If the policy was transferred to you for cash or other valuable consideration, the exclusion for the proceeds is limited to the sum of the consideration you paid, additional premiums you paid, and certain other amounts.
There are some exceptions to this rule.
In regards XXXXX XXXXX her items to charity, there is nothing special that you need to set up to do that, you can just give the items to charity as you would any other donations.
Please let me know if I can be of further assistance to you regarding this matter.
Thank you again for using JUST ANSWER.