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My father passed away last January, all his assets were in a…

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My father passed away...

My father passed away last January, all his assets were in a trust and I have trusteeship over them, however while I was trying to get payment on his life insurance policy; the company required me to have a new trust account and number. Do I handle the taxes on two separate tax forms due to the different tax ID nos or may I use one form for all and do I use my name for the new trust which I placed under the same name as the old trust?

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

I am not using an accountant, I am using turbo tax.

Submitted: 4 months ago.Category: Tax
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4/13/2018
Tax Professional: Lev, Tax Advisor replied 4 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,320
Experience: Taxes, Immigration, Labor Relations
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We need to verify who is named as a beneficiary on his life insurance policy ?
If you personally is named as a beneficiary - that payment will be to you personally.

If the trust was named as a beneficiary - the payment will be to the trust.

If there is NO beneficiaries - payment will be to his estate.

.

Life insurance proceeds paid to you because of the death of the insured person aren't taxable unless the policy was turned over to you for a price.

This is true even if the proceeds were paid under an accident or health insurance pol-icy or an endowment contract.

However, inter-est income received as a result of life insurance proceeds may be taxable.

Let me know if any clarification needed.

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Customer reply replied 4 months ago
Check was made out to the new EIN to the new trust of which I am trustee, when I file the taxes for the new and old trusts I would use my father's and for the old and the new EIN with my name for the new trust?
Tax Professional: Lev, Tax Advisor replied 4 months ago

Life insurance proceeds paid to you because of the death of the insured person aren't taxable.

So most likely - no need to include that amount on the tax return.

Please verify.

Unless you have any reporting form - you do NOT report that payment regardless to whom it was made.

If you have two trusts - I am not clear why - but that is possible - you will deposit that payment to the bank account for THAT trust.

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Tax Professional: Lev, Tax Advisor replied 4 months ago

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If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all Social Security / Tax related issues.

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