Legal Question in Wills and Trusts in California

My son passed away and left me his insurance policy at work for $120,000. I want to split it 3 ways, myself, and his two brothers, how do I do that and what are the taxes we have to pay on that money?


Asked on 3/16/16, 2:15 am

1 Answer from Attorneys
Scott Jordan Jordan Law Office

I am assuming the $120,000 is a life insurance payout. Proceeds from a life insurance policy are non-taxable monies. You can gift each son $40,000 but will have to file a gift tax return with the IRS. There won't be any taxes due but will be a deduction against you allowable life time gift tax exemption. You should consult with a CPA regarding the taxes and required return.

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Answered on 3/16/16, 10:05 am


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