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are the proceeds of a modified endowment contract taxable to

the named beneficiaries at the...
are the proceeds of a modified endowment contract taxable to the named beneficiaries at the insureds death?
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Answered in 1 hour by:
8/3/2012
Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
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Experience: Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
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Generally, the proceeds at death of a Modified Endowment Contract are not taxable to the beneficiaries after the death of the insured.

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Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
Experience: Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
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Customer reply replied 5 years ago
what would cause them to be taxable?
Only certain distributions or loans from a MEC are taxable during the life of the insured. After the insured dies, the beneficiaries of the MEC receive the death benefit tax free as with most life insurance proceeds.
Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
Experience: Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
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Phillip B, EA
Phillip B, EA
Phillip B, EA, Enrolled Agent
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