Hello! :O)

This past year, on June 30th, my mother passed away. She left my sister and myself a life insurance policy of approx. $15,000, which we split, 50/50. Will we have to pay federal income tax on this? Also, she passed away in CA and I live in AZ. For state tax, would I follow CA laws or AZ laws, and do you happen to know if I would need to pay state tax on this in either state?

Thank you so much for your help. Have an awesome weekend! :O)

Vicki Eikermann

No, also if the life policy had you both listed to receive the money, it did not go though the estate either, there is no tax on this money.

Also- to set your mind at ease - neither CA nor AZ have an inheritance tax. And there is no federal inheritance tax, so neither you nor your sister need to worry about taxes either on the life insurance proceeds or any other assets you may have inherited from your mother's estate.

Thank you so much, Fr Chuck and ebaines!! You just made my day!! :O) I hope you both have an amazingly awesome day yourselves!!

Vicki :O)