| Message |
Author |
|
 Posted: Tue Sep 22, 2009 8:01 am Post subject: Urgent! Death benefit for non-US citizen |
|
|
Hello all insurance expert!
I am urgently needing your advice.
My father purchased a life insurance policy for my mother 20 years ago and my mother recently passed away. We are not US citizen nor resident alien(green card holder) and currently living in Asia. My question is will IRS deducts tax from my mom's death benefit from the life insurance when insurance company wire transfer the money? I was told there is some kind of regulation as W-8BEN, can we avoid that and make sure to get the full amount of death benefit back? (I believe life insurance is non-taxable for US citizen and resident alien for sure which state in IRS website)
My email address is peaceyeh[at]hotmail.com and your kindly help with advice is truly appreciated.
Best Regards,
Michael Yeh |
|
peaceyeh
New member
Joined: 22 Sep 2009
Posts: 2
1.79 Dollars($)
|
|
| Posted: Wed Sep 23, 2009 6:23 am Post subject: |
|
|
| I think in the U.S. the actual benefit that life insurance offers is not taxable. But it's not the same with the interest that you earn by way of your insurance. That interest is taxable. |
|
steven
Senior member
Joined: 02 Feb 2006
Posts: 1553
215.65 Dollars($)
|
|
| Posted: Wed Sep 23, 2009 3:52 pm Post subject: |
|
|
Hi Steven, thank you so much for your feedback and information. What you saying is what I have also heard as well. However, i can't find any back up documents to show that "life insurance death benefit is also non-taxable for non-US citizen or non-resident alien" and that's why worry me the most. Other than that, tax on interest is reasonable although i don't know how much that will be yet.
Thank you. |
|
peaceyeh
New member
Joined: 22 Sep 2009
Posts: 2
1.79 Dollars($)
|
|
| Posted: Fri Oct 02, 2009 9:24 pm Post subject: non U.S. citizen |
|
|
| Have you already filed for the death benefit? I can't believe that a company wrote a policy on a non-citizen.I would like a little more info. on this please. Before I could comment, if you wish me to. Thanx |
|
agent07
New member
Joined: 14 Sep 2009
Posts: 15
3.59 Dollars($)
|
|
| Posted: Sat Oct 03, 2009 7:30 am Post subject: |
|
|
Hi peaceyeh, did you consult with any life insurance agent in your place? It's a little bit difficult to comment on it, since you haven't even mentioned about which nation you're from.
_________________
Register Now to have your Insurance queries solved. |
|
anonymous00
Guest
|
|
| Posted: Mon Oct 05, 2009 4:09 am Post subject: |
|
|
Here's a link for the IRS instructions on this:
http://www.irs.gov/pub/irs-pdf/iw8ben.pdf
It appears as if the death benefit itself is not taxable, but any interest paid will be subject to a 30% tax rate. The instructions are pretty clear, so I'd check it out and if you have any questions, speak with an accountant familiar with these things.
InsTeacher  |
|
InsTeacher
Moderator
Joined: 13 Aug 2007
Posts: 1331
Location: Oregon, USA
118.58 Dollars($)
|
|
| Posted: Mon Feb 22, 2010 10:19 pm Post subject: INSURANCE |
|
|
Where I am from they do not insure persons over the age of 70? I NEED A LIFE INSURANCE FOR SOMEONE OVER 70 THAT DOES NOT LIVE IN THE US? PLEASE PLEASE HELP
_________________
Register Now to have your Insurance queries solved. |
|
anonymous2010
Guest
|
|
|
|
dgoldenz
Senior member
Joined: 10 Jan 2009
Posts: 392
Location: Virginia
5.24 Dollars($)
|
|
| Posted: Tue Feb 23, 2010 1:50 am Post subject: |
|
|
| It's possible to get coverage from a U.S. carrier for the person if they do not live in the U.S. They would most likely be required to come to the U.S. to sign paperwork. |
|
BNTRS
Senior member
Joined: 05 Nov 2009
Posts: 824
12.54 Dollars($)
|
|
| Posted: Tue Feb 23, 2010 1:59 am Post subject: |
|
|
From what company? We tried to get someone who lives overseas coverage last year that would be signed for in the US (former US resident) and didn't find anyone willing to offer. They also won't take an APS from overseas.
_________________
High Risk Life Insurance Quotes |
|
dgoldenz
Senior member
Joined: 10 Jan 2009
Posts: 392
Location: Virginia
5.24 Dollars($)
|
|
| Posted: Tue Feb 23, 2010 2:10 am Post subject: |
|
|
| Depends on the country of origin. Last year a friend of mine at Guardian had an agent that wrote a policy on someone who lives in the UK. The stipulation was that client had to come to the US to sign paperwork. No idea how the medical underwriting was handled. I should also mention it wasn't a small case, that always helps. |
|
BNTRS
Senior member
Joined: 05 Nov 2009
Posts: 824
12.54 Dollars($)
|
|
| Posted: Tue Feb 23, 2010 2:20 am Post subject: |
|
|
Interesting. Maybe they give more leniency to the UK. We were looking at someone in the Phillippines. They said no chance on taking an APS from a Phillippines doctor and that unless the person had a residency in the US, they wouldn't consider it. Tried to shop it with about 15 companies, all with the same answer.
Also, it wouldn't just be the application that has to be signed in the US - they would have to complete the exam and sign any delivery requirements in the US too, forcing them to be here 2-3 times to get coverage, even if it could be approved. I'm sure it would be even more complicated for a 70-year-old who has likely had past health issues the company would want to know about. If they aren't taking an APS from an overseas doctor, they probably aren't taking a long history of APS's either.
_________________
High Risk Life Insurance Quotes |
|
dgoldenz
Senior member
Joined: 10 Jan 2009
Posts: 392
Location: Virginia
5.24 Dollars($)
|
|
| Posted: Tue Mar 22, 2011 2:19 pm Post subject: non-US citizen or non-resident alien and IRS |
|
|
According to Publication 17 IRS Tax Code. The death benefit itself is not taxable, but any interest paid will be subject to a 30% tax rate. Certain States Tax this income at different levels also (Such as CA and other states in the US). When it comes to the Estate of a person living in the US, the NON-US Citizen must pay taxes on any Estate properties (Bank Accounts, Homes, cars, etc.....) if the values of thses properties exceeds $2,000,000. Also, if the NON-US Citizen is living outside of the United States, the country you live in may have an income tax requirements on the money or estate goods. This depends on the treaty requirements between the US and the country in question.
_________________
Register Now to have your Insurance queries solved. |
|
Trongod
Guest
|
|
