“Life insurance policies payouts are tax-free, since they are legally and financially considered an “equal value replacement”.
you do not know your ass from a hole in the ground.”
Well since you are not brave enough to post statements like the above on the forum, but have to do it in secrecy of mail to my acct, it tells me what kind of sniveling asshole you are. Life insurance payouts become part of the the estate .... anything over 3.5 million is taxable.
read the tax law .... care to reconsider??? Not not smart enough ... send more emails in private, that way no one else can see what you are.
If your policy is payable to your estate, the death benefit is part of your estate, even though the beneficiary does not have to pay income tax on the proceeds. A modest estate, seemingly below the taxable minimum of $1.5 million (in 2005; $2 million in 2006-2008 and $3.5 million in 2009), can easily leap well past that point in size when insurance policy proceeds are counted.
To avoid having life insurance death benefits included in your taxable estate, you can transfer ownership of the policy to another person or trust.