Myth: Life insurance is not taxable

August 29, 2018 by Lee Conrad

Myth: Life insurance is not taxable
Although proceeds from life insurance are not subject to income tax, the IRS will impose estate tax when the policy owners die and the assets are transferred to the beneficiaries, writes an expert on Kiplinger. To avoid this, clients should consider an irrevocable life insurance trust and name it as the owner of their life insurance, advises the expert. “Upon your death, the proceeds from your life insurance will pass on to your heirs not only income tax-free but estate tax-free as well.”

Read the full Kiplinger article HERE. 

Originally Posted at Financial Planning on August 29, 2018 by Lee Conrad.