"kaye132" <kaye132[at]juno.com> wrote:

- quote -

Accelerated death benefits are tax-free if the insured is
terminally ill.

See IRS Publication 525, page 18, column 3.

http://www.irs.gov/pub/irs-pdf/p525.pdf

Tax-free insurance proceeds do not affect the taxability of
your social security benefits.

Frederick Lorca

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kaye132 wrote:

- quote -

Accelerated death benefits from a life insurance policy for
a terminally ill person who a physician has certified has a
reasonable expectation of death within 24 months is excluded
from gross income.

--
Alan
http://taxtopics.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I am getting an accelerated death benefit from a life
insurance policy. My husband is in hospice with a terminal
illness and is also catatonic. I need to take out a portion
now so that I can pay some medical bills as well as repairs
on my house. I would like to know if by taking out a portion
of his insurance now, will it be taxable and would it affect
my receiving his social security?

Thanks in advance.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >