Is Life Insurance Taxable To The Beneficiary In North Carolina?

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3 responses to “Is Life Insurance Taxable To The Beneficiary In North Carolina?”

1. 

   August 2, 2014

   janice hendricks

   Generally speaking Most insurance policies are not taxed if the beneficiary takes it out in a lump sum. There are situations where life insurance death benefits are exposed to estate tax or very few cases minimum tax depending on the State. The best way to check with your Tax adviser when its is used for Long term care purposes or needs not specific to insurance needs.
2. 

   September 10, 2013

   Peggy Mace

   When the Beneficiary of a life insurance policy in North Carolina receives life insurance proceeds upon the death of the Insured, normally, there is no income tax imputed. Federal estate taxes will apply for estates over $5,250,000. The state estate tax in North Carolina was repealed in 2013, so that residents of North Carolina who pass away after 1-1-2013 are exempt from state estate taxes.
3. 

   September 10, 2013

   Steve Savant

   Generally speaking, beneficiaries receive tax free death benefit proceeds from a life insurance policy at the demise of the policy insured. There are circumstances where life insurance death benefit proceeds are exposed to estate tax or in rare cases the alternative minimum tax. Most states have lower exemptions for estate transfer tax than the federal unified credit.