According to the IRS:
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"Generally, life insurance proceeds you receive as a beneficiary due to the death of the insured person, aren't includable in gross income and you don't have report them."
If the funds were received because you were a beneficiary, you should contact whoever issued the 1099-MISC and ask that it be corrected to show no income.
It may be that the funds went through the attorneys office, and the 1099-MISC was reported by the attorney's staff incorrectly.
Contact the attorney's office and ask if a correct copy be should be made, or if the funds were received for a reason that makes them taxable.
