Life insurance and the estate

[wiz1269]

My father passed away this month and I am trying to settle his estate, I have been told many different things by many different people and am not sure who is right. I am asking about WV estate tax and if the life insurance is included in the amount of the estate. My father had two life insurance policies one he had bought on his own naming me and my sister as the beneficiaries and the other he had through his work naming me and my sister as the beneficiaries. From what I could gather the state does not tax the estate if it is less than $600,000.00. Is the IRS the same way?

 

[advisor10]

1-29-2002

DEAR WIZ:

In ANY state, life insurance is NOT considered part of the estate, so it does not need to be reported to the probate court as such.

You would need to speak to a local CPA or tax accountant to find out whether it is taxable federally. It may not be if it falls below a certain amount, but they can tell you for sure so you won't have to worry about it any more, or plan in advance to calculate how much the taxes would be, if any.