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badbeckytaylor
New Member

My father in-law passed away in 2018 and left his life insurance policy to my daughter, whos under age. I'm the custodian. Do we claim it on our taxes for 2018?

She received 7,500 but its in an account earning interest for college. I'm currently the custodian because her grandfather set it up that way.  I'm not for sure if we claim or hold off because she's a minor and will have to pay tax on it when she becomes of age.
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AlanT
Expert Alumni

My father in-law passed away in 2018 and left his life insurance policy to my daughter, whos under age. I'm the custodian. Do we claim it on our taxes for 2018?

No, you do not have to pay tax on life insurance proceeds.  Your daughter will not have to claim this as income, now or in the future.  

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AlanT
Expert Alumni

My father in-law passed away in 2018 and left his life insurance policy to my daughter, whos under age. I'm the custodian. Do we claim it on our taxes for 2018?

No, you do not have to pay tax on life insurance proceeds.  Your daughter will not have to claim this as income, now or in the future.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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