by sireproxy1 » Fri Oct 22, 2010 03:19 pm
My Dad recently passed away and I am trying to learn as much as I can about collecting on his life insurance policies as I can. Can you please give me your advice or provide me with some links or suggestions of sites that I can go to, to learn about how many different options there are to claiming and receiving life insurance as a beneficiary?
I live in Wisconsin and the deceased is from Wisconsin, if that matters in your answers. The policies have either two or three beneficiaries.
Some things I would like to learn about are:
How do I make a claim?
How is the money delivered? There are three beneficiaries.
Are taxes taken out of the money?
Is there more than one way to receive the money to reduce or eliminate the amount of taxes taken out of it?
Is there anything I can invest the money in that would eliminate or reduce taxes?
You probably get the idea of what I am after, but I'm sure I missed a bunch more questions, so if you have more answers to questions I didn't ask, please give me as much info as you can. If anyone else out there reading this has questions to ask, please add them on. If anyone has suggestions or answers, please reply.
Thank you and best regards to all.
I live in Wisconsin and the deceased is from Wisconsin, if that matters in your answers. The policies have either two or three beneficiaries.
Some things I would like to learn about are:
How do I make a claim?
How is the money delivered? There are three beneficiaries.
Are taxes taken out of the money?
Is there more than one way to receive the money to reduce or eliminate the amount of taxes taken out of it?
Is there anything I can invest the money in that would eliminate or reduce taxes?
You probably get the idea of what I am after, but I'm sure I missed a bunch more questions, so if you have more answers to questions I didn't ask, please give me as much info as you can. If anyone else out there reading this has questions to ask, please add them on. If anyone has suggestions or answers, please reply.
Thank you and best regards to all.
Posted: Fri Oct 22, 2010 04:35 pm Post Subject:
Posted: Fri Oct 22, 2010 04:35 pm Post Subject:
Posted: Fri Oct 22, 2010 04:42 pm Post Subject: a little something
The death tax was repealled by President Bush so that you are not taxed on inheritance or life insurance monies received up to like $3 million. Obama isn't continuing it, he is letting it expire--which is in 2011--after this time I'm sure the death tax will be enacted again--I'm no expert, just a recent beneficiary--
Posted: Fri Oct 22, 2010 05:42 pm Post Subject:
dbpmnn, thanks for the reply and information.
You say he is letting it expire in 2011. Does that mean the end of 2011 or the beginning? Since it is so close to the end of the year, do I need to rush, rush, rush to get these taken care of before the end of 2010, or do I have all of next year without worry?
Also is that for both life insurance and inheritance?
Posted: Fri Oct 22, 2010 05:52 pm Post Subject: a little something more
I am not sure I'm sorry:( I'm no expert and I only know because my mother died a year ago in a car accident--They will probably send the beneficiaries an equal portion unless the owner of the policy specified otherwise. As far as how they send you the money... We received a check made out to each of us from one company, and from the other it was a payment/checkbook thing, where you have an account I guess with the insurance company, like a bank accoount you write checks out of--you have the option of leaving it in the "insurance companies account"( I don't know what else to call it)--where it can earn a small interest, or you can write the lump sum out on the first check of the checkbook they send you--which is what we did--I didn't know if we would get taxed on the interest--I thought we might so we took it out immediately--plus--who knows what the insurance company does with the money in the account while you leave it there?? That is all I am familiar with--
Posted: Fri Oct 22, 2010 05:59 pm Post Subject: this too
As far as your question about whether it applies to inheritance and life insurance, I believe it is the combination of both that together are less than $3million--my father has told me this, because of the way his life insurance and inheritance will effect me--He however has taken care of all that and I don't need to worry--attorneys are great for many things--As far as investing--This is just a thought--put the money into somekind of retirement account, 401k, CD--whatever--then your money is tied up and you don't need to worry about taxes until the time you take it out---- As far as inheritance--land, buildings, companies, etc, all count toward inheritance--so I need to ask my dad if it's 3million cash or cash and other assets combined?? I am not sure---
Posted: Fri Oct 22, 2010 06:16 pm Post Subject:
dbpmnn,
Thanks again for sharing your knowledge with me. I am nowhere near 3 million so we don't need to worry about that. If you think of anything else down the road, keep me in mind.
Best regards.
Posted: Fri Oct 22, 2010 06:31 pm Post Subject: will do
Me either! My dad tells me he is taking everything with him, he probably has it set up where my inheritance is life time health insurance, some form a CD that i can't touch til I'm 101 y/old, and maybe just maybe his hunting rifles and guns--everything else he will probably be buried with---he really might:)-- My mom's policy was $50K for the two of us--and it was through a fraternal life insurance co.--my parents were divorced and I was closest to my mother--It is smart to put the money away somewhere--CD or maybe buy some land?? (land can be considered a form of retirement too-) that way you don't spend it--but you can get it if you absolutely have to--just a thought--
Posted: Fri Oct 22, 2010 06:47 pm Post Subject:
Glad to hear your Dad had a plan anyway. My Dad was terminal for about 6 months and didn't get anything in order. No will or instructions of any kind for anything. Nothing. You are right about land. We got a fantastic deal a some property when we were young and I plan on holding onto it until I need to "cash it in" which I hope is never. CD's have next to no return on them as far as I know, but aren't most other investments too risky? 401K? IRA? I don't like the idea of stocks, mutual funds, etc. But probably because I don't know much about them.
Posted: Fri Oct 22, 2010 07:17 pm Post Subject: one more
My father would tell you to buy gold--as in physical gold bricks or whatever they come as, and a safe to put them in--This is the "safest" investment--he says--gold through the years is the constant and if you check the stock market, it has kept going up... foreign currency is another you might want to look into...My old college roomate's inlaws own an oil company and a chain gasoline company and the word is the denali( (I don't know if I spelled that right, but its the currency in Iraq) is forcasted to go 3:1 to the American dollar--I'm only 29-- and this stuff is a bit over my head, but you might find something in it... I'm so sorry for your loss--I should have mentioned that before...my mother died in a car accident like I mentioned--she was my very best friend... but I think it doesn't matter how you lose them, it is emptiness that can't be filled... my mother didn't have anything planned out either... and after a year we are still trying to wrap up loose ends...Again I am ever so sorry about you dad...
Add your comment