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Bene Payouts-Subject to Probate?

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sherdoe

Junior Member
What is the name of your state?Illinois, Cook County

When a beneficiary receives a life insurance payout, are these monies considered an asset of the estate? If so, is the beneficiary required to turn this money over to the estate?

Also, what about pension or 401K beneficiary payouts? Are these type of
beneficiary payouts considered an asset of the estate? If so, is the beneficiary required to turn this money over to the estate?

Our family is confused about this issue as there will be expenses due to probate and we are not sure if the monies received so far by each beneficiary is legally bound to cover the probate claims.

Thanks for any input!
 


pojo2

Senior Member
Consult your Tax professional on that 401K as there WILL highly likely be tax consequences to the beneficiaries. If nothing has been distributed yet you might consult some BEFORE the distribution to see about lessening the tax consequences to each peson who is a beneficiary.
 

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