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Level 2
Oct 30, 2024 7:16 PM UTC
Question

Revocable Living Trust

I have an insurance policy that has my sisters listed as beneficiaries and also our trust, so that the money given to the trust can be used to pay off mortgage debt in the event I pass away. Will the money the trust receives from the life insurance be taxed as income? And will my sisters portion still be received tax free? 

    3 replies

    Level 15
    Oct 30, 2024 7:20 PM UTC
    No text available
    EGreene21Author
    Level 2
    Oct 30, 2024 7:58 PM UTC

    So even then if a trust receives the money from the life insurance policy, the trust does not have to pay income taxes on it? 

    Level 15
    Oct 30, 2024 8:01 PM UTC
    No text available