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I was the original owner/beneficiary on a whole life policy…

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I was the original owner/beneficiary...
I was the original owner/beneficiary on a whole life policy on my husband. When we later divorced. I kept that policy intact as part of my settlement & continued to make all future payments myself. During the divorce the cash value of that policy was counted as my asset . When my ex dies and I receive that policy face amount in one lump sum, will I owe any taxes, either inheritance tax or income tax?. And if so, which tax will I owe and at what rate? And will that be based upon the full face amount or only interest?
Submitted: 2 years ago.Category: Tax
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2/24/2016
Tax Professional: Richard, Tax Attorney replied 2 years ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 57,234
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Good afternoon Joyce. My name is ***** ***** I look forward to helping you.

No, there will be no tax. Proceeds you receive as the beneficiary of a life insurance due to the death of the insured party are not taxable. https://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Interest,-Dividends,-Other-Types-of-Income/Life-Insurance-&-Disability-Insurance-Proceeds/Life-Insurance-&-Disability-Insurance-Proceeds

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