In Kids We Trust?

McDevitt, Timothy J.
April 1993
Journal of Financial Planning;Apr93, Vol. 6 Issue 2, p54
Academic Journal
The article presents information on insurance. One commonly held perception by many clients of the insurance companies-- is that the life insurance proceeds payable after their death will be "tax free" to their beneficiaries. The good news is that those proceeds probably will be received free of income tax. The bad news is that the proceeds usually are not free of federal estate tax, which means that the Internal Revenue Service may be entitled to claim up to 55 per cent of those proceeds. So most of the clients are only half right in their perception that life insurance is, in fact, tax free.


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