2 questions - insurance and fees

[soulslayer]

What is the name of your state? North Carolina

1 - Does Life Insurance pass through probate or would the check go straight to the beneficiary?

2 - I can't find the estate tax amount for north carolina. Does anyone know how much that's going to be? We'll estimate the estate is worth $200K. Is there a flat percentage? I know it's due within 9 months of the death, but all I can find is that it's not taxed under $850K. I find it hard to believe the government wouldn't tax it at all.

Thanks

 

[seniorjudge]

"...1 - Does Life Insurance pass through probate or would the check go straight to the beneficiary?..."

It depends on the way the life insurance is written up. Generally, the proceeds are paid directly to the beneficiary and thus do not go through the estate. I have, however, seen proceeds paid directly to an estate.

 

[Dandy Don]

See if you can find a website for North Carolina state tax agency and get your question answered there or consult a local CPA or tax accountant.

 

[soulslayer]

I just got confirmation from the attorney that there is no estate tax on an estate under 1.5 mil. That's a relief.

Also, the insurance is made out to the beneficiary not the estate. I wonder how much tax would be on that?