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Life Insurance Distribution

Highlighted
Level 1

If a spouse inherits money ($250,000) from her husbands life insurance policy (tax free), can she then distribute $50,000 to each of their four children without having to file Form 709? 

0 Cheers
7 Replies 7
Highlighted
Level 15

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

 


ex-AllStar
Highlighted
Level 15

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

 

That canned wording is really lame and it gets lamier the more times I see it.  But then again, that is Intuit's answer to installing a barn door.  Just think if Intuit had been hired to build the Great Wall of China.  Instead of a wall there would have been a few stones scattered along the border saying "You have come to China but you may be looking for Russia.  Cheers!"

 

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Level 15
We won't even get into our southern border and how that is coming along.
Cheers!

ex-AllStar
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Level 15

Funny that nobody from Intuit reached out and suggested adding a Fast Wall Fee for that one.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Level 15

No


ex-AllStar
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Level 8

There is no way to say succinct!

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Level 11

Well, actually, maybe, if the policy claim has not yet been submitted (for all we know from the question, the husband is still alive); the wife "disclaims" $200,000 of the proceeds; and the kids are the alternate beneficiaries for that amount.