Question about life insurance claim and taxes in Canada.?
Question about life insurance claim and taxes in Canada.?
I live in Canada. My husband recently passed away and my 18 year old son is the beneficiary for life insurance. My son wants to give me the money. If he does do I have to claim this as income? If my son keeps the money he does not claim it as income does he?
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2 Responses
2.1.2010
Best Answer – Chosen by Voters Life insurance proceeds is tax free to the recipient (your son), and tax free to you if he gives you part of the proceeds.
2.1.2010
It's tax free to him as a life insurance payout, and it's always tax free in Canada to gift money to an adult, in any amount, from any source.