Life Insurance and Gift Taxes - Texas

[donclick]

What is the name of your state? Texas.

Good day.

Before my fathers death, he attempted to change the benificary named on his insurance policies. he managed to get 1 changed, but due to ignorance (on all parties involved) he was not able to change both.
The question - My StepMother is receiving the bulk of the insurance monies. We would like to know how to transfer those funds to me w/o encuring the Gift Tax, or other taxes, as my fathers intent was to have the monies given to me directly.

Does anyone have any suggestions on how we can do this, if at all?

 

[Dandy Don]

Your question would be better answered by talking to a CPA or income tax accountant or certified financial planner.

 

[ALawyer]

Speak to a Texas wills and trusts lawyer. If the amount of the insurance is small, there should be no gift tax issue at all. If it is large there are several things that could be done, but it requires a local lawyer to do them and they must be done in a timely matter. Also, one issue that arises is would your father's estate itself would be otherwise taxable if you rather than his spouse was named beneficiary.