Are life insurance proceeds taxable income to the deceased’s revocable living trust.?
The trust was the beneficiary of the life insurance policy. The policy was paid up in the 70′s and over half of the death benefit was accumulated dividends and interest. Are the dividends and interest taxable income to the trust, and if so what tax form needs to be filed.
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September 10th, 2010 at 3:01 am
The dividends and interest should have been paid by the owner of the policy in the year declared.making all the proceeds non taxable.
September 10th, 2010 at 3:42 am
Life insurance left to a named beneficiary (including the beneficiaries of a living trust) are not subject to income taxes. One of the reasons for this is that the payer of the insurance premium paid for the premium with after tax (non-deductible) dollars.