by Guest » Wed Aug 11, 2010 05:59 pm
My ex- husband recently died without a will and no physical assets to speak of. He is leaving behind our 9 year old daughter AND his 17 year old son from a former marriage. However, through his employer, he had two life insurance policies as well as some retirement. He listed our daughter as sole beneficiary of all 3 assets. Based on many conversations I have had with him, I have reason to believe he did this on purpose. I also have photocopies of the beneficiary forms that he filled out in his own handwriting as provided to me by his employer. I am wondering if his other ex- has much ground to contest it on behalf of their son. Also, are life insurance payouts considered taxable income?
Posted: Thu Aug 12, 2010 09:41 am Post Subject:
No, it's generally not taxable. But remember, if you receive a lump sum death benefit you need to check it with whatever it's supposed to be. Say, the death benefit is supposed to be $50,000 and you receive $50,100, then the excess amount of $100 would be taxable interest. This $100 should be counted on the tax return.
Posted: Fri Aug 13, 2010 03:13 am Post Subject:
No they don't have grounds to contest, and no it's not generally taxable.
Ex wife, other son, not relevant. The proceeds go to the beneficiary.
The one problem you do now have is if these funds are going to a daughter who has not reached legal majority, they will be held in a trust until she does reach legal majority. And you'll need a court order any time you wish to take out funds.
Posted: Sat Sep 11, 2010 10:47 am Post Subject:
I'd echo all that has been said about your tax thing.
And you'll need a court order any time you wish to take out funds.
I don't see any real problem coming your way! I feel it's quite common these days.
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