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

[propman071]

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.

[NCperson]

@propman071 did you receive a Form 1099-R from the insurance company? 

[Critter-3 · Accepted solution]

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.  

[propman071]

Thanks for the reply. I don't think that we got a 1099-R, but I'll check with the insurance company to confirm.