Posted on 06/23/2012 4:49:33 AM PDT by Olog-hai
This URL will take you to the IRS simplified explanation of the Federal Estate Tax.
http://www.irs.gov/businesses/small/article/0,,id=164871,00.html
Life insurance proceeds shouldn't be taxed, IMO, much less at 50%. If I had known they were, I wouldn't have kept the insurance this long!
Thanks again!
My state farm agent told me life insurance benefit is not taxed. In other words, when your beneficiary gets the money, they do not have to pay tax on it.
I should point out that the beneficiary should be a specific person or persons, not your estate. The person is paid immediately in a lump sum and it is not part of your estate.
Check with your agent or insurance company to be certain of your circumstances.
I’m going to look into it thoroughly! Thanks All!
i was speaking with a friend of mine about a settlement he has with the IRS (It was agreed to three years ago) and he mentioned that his attorney mentioned that it's not uncommon for them to take over a decade to cough up.
But if they think you owe them...
i was speaking with a friend of mine about a settlement he has with the IRS (It was agreed to three years ago) and he mentioned that his attorney mentioned that it's not uncommon for them to take over a decade to cough up.
But if they think you owe them...
My MIL died last summer, and we’re still dealing with the aftermath. After battling cancer for 10 years, she didn’t have any cash left to speak of.
She was an artist who enjoyed lots of recognition (has several permanent exhibits in museums all over the country, etc.), but never actually sold enough art to make a living at it (she had a professorship, and lived off her settlement from her first husband and Social Security).
We had to hire an IRS-approved art appraisor to value all her unsold art... the appraisal cost us $35K for the inventory process (with professional photos of each piece) and another $14K for the report to submit to the IRS. We also had to get a professional appraisal for her house and art studio in Los Angeles.
It may take us decades to sell her art, but we have already had to send the IRS a check for $245,000, which we hope will be approved whenever they get around to reviewing the filing. Legal bills have also gone over $100K so far, and we’re not quite done yet.
My MIL had been talking for years about destroying all her art so she wouldn’t bankrupt the family. She was right about that.
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