• Revenue Cycle Management
  • COVID-19
  • Reimbursement
  • Diabetes Awareness Month
  • Risk Management
  • Patient Retention
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • Practice Efficiency
  • Finance and Wealth
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Practice Growth
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

Q&A: Estate taxes on life insurance?

Article

Is it true that life insurance is not subject to estate taxes?

Q: Is it true that life insurance is not subject to the estate tax?

A: Life insurance is generally not subject to income or capital gains taxes upon the death of the insured. But a policy cashed prematurely (during life) could result in taxable gains because of cash build-up within the policy, similar to any other investment. For federal estate tax purposes, life insurance proceeds are taxable, although there is an exemption when the proceeds go to a surviving spouse. Furthermore, there is a way to have life insurance owned by a trust that will keep the proceeds out of your taxable estate and avoid the federal estate tax upon your death. A qualified tax attorney can help you with this.

Related Videos