Death Benefit

[tsuewalker]

Client is a retired school employee. She has a $5000 death benefit through them. She has heard through the grapevine that if she signs over this death benefit to a funeral home, that it will be non taxable. Can anybody help me with this? Thank you in advance!

tsw

[taxea]

Ask her to find out from the "grapevine" where they obtained this information. If she can provide documentation that speaks to this then you will have your answer.

[TAXNJ]

Marvin ?

Client is a retired school employee. She has a $5000 death benefit through them. She has heard the grapvine that if she signs over this death benefit to a funeral, that it will be non taxable. Can anybody help me with this? Thank you in advance!

tsw

Answer: Marvin Gaye "I heard it through the grapevine".

See if this helps with your scenario

http://www.elderlawanswers.com/make-sure-your-life-insurance-is-not-taxed-at-your-death-8296

[ATSMAN]

Client is a retired school employee. She has a $5000 death benefit through them. She has heard the grapvine that if she signs over this death benefit to a funeral, that it will be non taxable. Can anybody help me with this? Thank you in advance!

tsw

My father in law was a retired school teacher in MA and the school system had a $5000 death benefit policy as part of his benefits package. When he passed his children had to sign a notarized claim form for that benefit and it was tax free. There was no requirement to use it for funeral expenses etc.

So please have the taxpayer give you more details that they can obtain from the HR Dept.

[Jiggers]

The death benefit from the school system in Texas is taxable. I have a client that received a death benefit on the death of his mother and the reporting document was a 1099R. Taxable. It was not life insurance.

[tsuewalker]

Death Benefit

The grapevine was her daughter who lost a daughter in a car accident a couple of years ago and she had something similar and signed it directly over to funeral home and she told her mother it was then tax free. I love the Marvin Gaye answer! LOL Thanks for your help in advance!!!!

tsw