Life Insurance Payout and Estate Taxes
Reader Question
When I die and my life insurance policy pays out to my family…how will that be taxed?
Jenny,
Canyon Lake, Texas
I found this excerpt about your question Note: Under the current federal law, beginning in 2011, estates over $1 million will be subject to the federal estate tax with a maximum tax rate of 55 percent. Note there is a deduction against income for estate taxes paid. A good estimate of the net total percentage paid in taxes at the top brackets is 70%.
life insurance policy, life insurance policy cash value, life insurance policy dividend, life insurance policy for parents, life insurance policy owner, life insurance policy quotes, life insurance policy review, life insurance policy sample, life insurance policy search, life insurance policy types