My client received a 1099-MISC with $50,000 in box 3 (Other Income).  Here are the facts:

1.  The 1099 was from his fathers company

2.  The company had purchased a life insurance policy on him years ago

3.  His father is still alive, the company just determined they no longer needed the policy

4.  The policy was for $150K and had earned $60K.  The company kept the $60K and split the $150K between my client and his siblings (their father is well off and didn't need the money)

Is this total amount taxable and reported as "Other Income" on his 1040?