I am told that there is no California inheritance tax up to 1.5 million. What if the beneficiery lives in Florida and the owner of the policy lives in California ?
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I am told that there is no California inheritance tax up to 1.5 million. What if the beneficiery lives in Florida and the owner of the policy lives in California ?
Quote:
Originally Posted by glennz
You refer to "the policy" - life insurance passes directly to the beneficiary and there is no inheritance tax on it. It does not pass through the estate.
Hi Judy ! Thanks for the answer and do you mean "refer to the policy" that each policy is different and "read the policy" ? Is the inheritance tax different state to state because I wondered if my daughter lived in Florida would it be different that California ? Also my insurance agent says there is tax on anyone except a spouse and my accountant says not true ? Ambiquity nit my favorite thing when lots of money is at stake. Thanks,Glenn
Individual life insurance proceeds pass directly without taxation to a named individual... life ins proceeds are considered "special" money and are not generally taxable to named individual beneficiaries...
Quote:
Originally Posted by glennz
No, I was quoting YOUR reference to "the Policy." I assumed this meant you are referring to an insurance policy and not cash. Life insurance does NOT pass through an estate, it passes directly to the beneficiary and is non taxable in ALL States.
Can't speak for California law - have some knowledge of NYS law.
How is your insurance agent involved in this? I can understand your Accountant being involved but where does your insurance agent come in?
Any life insurance beneficiary collects 100% tax free money provided they are listed on the policy as the beneficiary (regardless of how many there are, i.e. 3 sisters, spouse, etc) regardless of what state they live in or what state the person died in.
Your insurance agent is incorrect.
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