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LearnByDoing t1_j48xaze wrote

There is no "threshold" and there is no tax for beneficiaries who inherit bank accounts or the benefits from life insurance. If you were to inherit an IRA or other retirement plan then there could be income tax due. Some large estates can also be liable for estate tax but not the beneficiary.

TLDR: Life insurance and bank accounts are not taxable to beneficiaries.

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weaselpoopcoffee1 t1_j49fxx7 wrote

Worked in life insurance for many years. No tax on proceeds. You may receive a 1099 for any interest paid on the proceeds if they exceed 10 bucks.

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