Sentences with phrase «insurance proceeds»

It seems that those whose job it is to write the tax code understand the importance of life insurance just as well as ordinary consumers, and those legislators have written a number of special considerations into the tax code for life insurance policies and life insurance proceeds.

AD&D Insurance proceeds are paid out in a single, full lump sum after the claim is processed.

Although there is no good reason why you should wait to make a claim for insurance proceeds that are coming to you, there is no limit to when you can receive it.

Life insurance proceeds can also be used to pay off the family home, relieving the surviving spouse and family members of their single biggest monthly expenditure.

If life insurance proceeds push your estate value above the exemption level, the government will hand your beneficiaries a big tax bill.

When considering the donation of life insurance proceeds to a favorite charity, there are several factors that are important to keep in mind.

In the event of my death, I would like to give a small amount of my life insurance proceeds to my brother as well as a dear family friend - but the bulk should go to my significant other.

Typically the way life insurance proceeds go is first to a spouse.

This is because if the insured is also the policy owner, the value of the life insurance proceeds could then be included in the estate's value — and potentially be subject to additional estate taxation.

Life insurance proceeds aren't subject to income taxes, but the amount is included in the deceased's estate, said Brett J. Barthelmeh, an estate planning attorney with Squillace & Associates in Boston.

For example, part of the insurance proceeds may be used to pay off the balance due on the mortgage.

Also, by signing over the life insurance proceeds to the charity, these funds will not be included in the overall value of your taxable estate.

Your beneficiaries may be able to use life insurance proceeds to help replace income, pay the mortgage and fund education, for instance.

Inherited assets, such as traditional IRAs and tax - deferred annuities that bring with them an income tax liability, may benefit from life insurance proceeds.

Life insurance proceeds are a tax free lump sum paid to the beneficiary, someone who is named by the insured on the contract.

For example, then, if you died from a heart attack or other medical issue, your family would receive little money in life insurance proceeds.

In addition to life insurance proceeds providing a financial cushion to loved ones who are left behind, there are also a number of advantageous tax benefits that go along with owning certain types of life insurance plans.

Life insurance proceeds are available almost immediately upon your death and can help you avert this situation.

Normally life insurance proceeds are protected from creditors, but if there are no living beneficiaries then the proceeds can be open to creditor's claims.

Rather than depleting the funds that they have in savings, or racking up large debts on their credit cards, wouldn't it be easier to use life insurance proceeds to allow your heirs to quickly and easily pay these costs?

Without the life insurance proceeds, they might face having to sell off family heirlooms, property or the family business to pay the taxes.

Another common use of life insurance proceeds is to pay off debts.

The problem is that the estate tax can also apply to life insurance proceeds — unless you take specific steps such as the ones below to help guard those life insurance funds.

The inability of the minor to consent may delay the payment of insurance proceeds.

One of the biggest reasons for this is because life insurance proceeds can be used by loved ones and survivors for some needs — including the payoff of debts, the continuation of income, and / or for keeping financial promises like funding a child's or a grandchild's future college education.

That isn't always the case and isn't necessarily the best use of insurance proceeds.

Life insurance proceeds provide money directly to your beneficiaries, to help your family pay bills, fund a child's education, protect a spouse's retirement or assist aging parents if you're no longer able to care for them.

For instance, major life changing events such as marriage, divorce, the birth or adoption of a child, or the purchase of a new home or business will all constitute a likely change in the amount of life insurance proceeds that your survivors will need.

Here is just one example of the special tax treatment life insurance proceeds often enjoy.

Beneficiary is the person (s) or entity (ies) supposed to get the insurance proceeds when the insured dies.

From 1976 through 2012, when many insurers settled with other states over the benefits, the West Virginia Treasury collected $ 3.8 million in life insurance proceeds.

The first step to leaving life insurance proceeds to your pet is making sure people in your life know about what's to happen.

Death Benefit — life insurance proceeds are generally federal income tax - free to the beneficiary

With a separate person overseeing the financial side of things, your pet's caretaker can't just blow the life insurance proceeds on themselves.

Leaving your non-human friend life insurance proceeds is the best way to make sure they're cared for once you die, but that doesn't mean your pet doesn't need some help.

In those cases, you may be leaning toward leaving your life insurance proceeds to a pet who has never let you down.

By far, the best way to account for the financials of leaving your pet life insurance proceeds is setting up a pet trust.

It's not uncommon for people to continue to support a nonprofit or charity through life insurance proceeds.

In all cases, Indemnity refers to the insurance proceeds that are paid to the insured or beneficiary in the event of a loss.

Often the life insurance proceeds are used for future living expenses, paying off a mortgage, and to cover final expenses such as funeral / burial costs.

Instead, it's best to set - up a trust to benefit the child and name the trust as the beneficiary of the policy, or name an adult custodian for the life insurance proceeds under the Uniform Transfers to Minor Act.

Life insurance proceeds can provide the financial support needed for these special individuals in your life.

These are permanent plans of insurance and can be pricey, but the smaller insurance proceeds will cover the cost of a funeral.

For example, you might have your life insurance proceeds divided up unequally, but only because one of your children has special needs that will require a lifetime of care.

Life insurance proceeds can help your loved ones cushion the economic impact that may occur as a result of your death.

Life insurance proceeds can be used to assist in paying these.

Pennsylvania exempts life insurance proceeds from the inheritance tax.

Life insurance proceeds can also ensure that your spouse can afford to pay off the house, or that other financial goals can be met even if one of you is gone.

Life insurance proceeds that pass to the beneficiaries are tax - free at the state level too.

If you don't have a will, your state laws will dictate the distribution of your life insurance proceeds.