Can the IRS seize a beneficiary's death benefit for tax arrearages owed by the deceased?
The IRS has a lot of power, allowing them control of anything tax related. There are only 3 instances in which the IRS can seize any kind of benefit from someone, that benefit being your tax refund. That can only be taken upon the instances of child support bills, back taxes owed, and student loan debt. When you happen to be a beneficiary of a trust from the estate of a deceased person, you are entitled to everything stated on the life insurance policy, as long as the death takes place within the time frame highlighted on the policy.
Even if the deceased person had taxes he/she had not filed or paid for, the money received from the death benefits of the policy cannot be subjected to attachment by the IRS, state tax officials, or judgement creditors. That money is yours, and yours only, tax free.
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