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?

badbeckytaylor · ‎June 5, 2019

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.

AlanT · ‎June 5, 2019

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 · ‎June 5, 2019

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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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?