The proceeds from a life insurance policy that has no beneficiary (or no living beneficiary) listed on the life insurance policy, will go to the estate of the life insurance policy owner when the insured person dies.
There it will be subject to probate costs that could have been avoided had a beneficiary been listed on the policy. It will also be subject to any estate taxes.
However, if the life insurance provides go directly to an individual, rather than through probate, the death benefit is usually paid put free from any federal income tax.
Learn more about life insurance tax.
There it will be subject to probate costs that could have been avoided had a beneficiary been listed on the policy. It will also be subject to any estate taxes.
However, if the life insurance provides go directly to an individual, rather than through probate, the death benefit is usually paid put free from any federal income tax.
Learn more about life insurance tax.
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