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| *Loan,banking and credit>>>social insurance |
Is Social Security notified of amounts paid to beneficiaries when a life insurance policy is paid out? |
When my wife's mother died some 30 years ago, my wife's SSI was cut off because the payout increased her resources above the maximum permitted. AFAIK, my wife did not notify Social Security of the payout to her before Social Security notified her of the cutoff. Social Security are not notified when death benefits from a life insurance policy are paid out. Because death benefits are not taxable and therefore the government does not record such data. Social Security is suppose to pay death benefits to the spouse and children in the event of your wife's mom death. Remember, social security is on the path of going bankrupt by 2042. So don't expect it to pay you much when you retire. Source(s): 231 yes I believe the IRS is notified and indirectly Social Security. While the amount is tax free, it does create resources. The recipient is required to notify Social Security. Now, that does not permanently cut it off, it is just cut off until they are exhausted. The funds can be used to purchase legitimate assets however, but may not be used for gifts. So, for example, you could buy a car and begin receiving benefits again since the cash was gone, but you could not give a Christmas gift with it, unless it was trivial in amount. Your wife probably did not have to notify them, they probably due a routine inquiry with the executor of the estate. |
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