Have a Tax Question? Ask a Tax Expert
Thank you for your tax question today. I will work to provide you the most accurate answer.
If I understand your question correctly, you are merely a listed beneficiary on a life insurance policy. You get nothing unless the insured person dies.
As a listed beneficiary on a foreign person's life insurance policy, you do NOT report anything to the IRS.
The current value of your account is zero, and you do not have what is considered an account in your name at this time.
I hope this clarifies your responsibilities in this situation.
Have a great day!
OK, so if I understand now, your mother bought a life insurance policy on your life for the benefit of YOUR daughter in the event of YOUR death.
What type of life insurance policy is it? Is it a CASH VALUE life policy where a portion of the premium goes to a cash-value investment? Or is a TERM LIFE policy where there is no cash value, only a death benefit?
Was the policy purchased from a US company, or a policy in CHINA?