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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10891
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Well I was wondering whether or not I have to claim money my

Customer Question

Well I was wondering whether or not I have to claim money my mother left to me when she passed away last February. It was not a will but insurance policies like Allstate, Mutual of Omaha and a few others some were for 5000 some 2500 things like that. Thank you very much.
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: Not that I am aware of.
Submitted: 4 months ago.
Category: Tax
Expert:  Lane replied 4 months ago.

Hi. I can help you here. My name's Lane

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If these were life insurance POLICIES, the death benefit from life insurnce is not taxable to the beneficiary.

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However life insurance companies ALSO offer annuities... Annuities, which grow tax deferred (where you mother would never have had to pay tax on the dividends or interest) CAN be taxable, or sometimes partially taxable, to the beneficiary.

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But from the amounts you privided (round numbers like 2500 and 5000) there were likely life insurance policies (the death benefit on these is usually set up in round numbers) and therefore NOT taxable

Expert:  Lane replied 4 months ago.

If you're not certain, you can call the insurance company and give them your mother's name and social (and you may be able to do this with your own name and social security number since you were the beneficiary) and they can tell you whether each was a policy or an annuity.

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Please let me know if you have any questions at all.

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And if you DON'T have other questions Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …would be appreciated!

Otherwise I receive no compensation for the work.

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Thank you,

Lane

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I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986