Do I need to report the life insurance payout for the primary member of a family trust when filing for the family trust?

Forum|Forum|2 years ago
October 14, 2023
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My Dad started a family trust with myself and other siblings as members of the trust. He passed away and had a small life insurance policy that paid out in 2022. Do I need to claim that as income when filing taxes for the family trust? The amount was around $8,000. Thanks.

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Best answer by Critter-3

Life insurance payouts due to a death of the covered policy owner is usually not taxable (nor considered taxable income) ... if it was then a 1099-R will be issued in January. Contact the payer to ask if any of the distribution is going to be taxable.

N

NCPERSON1

@propman07 did you receive a Form 1099-R from the insurance company?

Critter-3Answer

Life insurance payouts due to a death of the covered policy owner is usually not taxable (nor considered taxable income) ... if it was then a 1099-R will be issued in January. Contact the payer to ask if any of the distribution is going to be taxable.