cheid1977
My Grandmother purchased a Irrevocable Life Insurance Policy in my name 20 years ago. The policy would be worth $10K once I turned 30. Now that I am 30 I am looking to cash this policy out to invest the money and pay down debt. What taxes would I owe once I cashed this policy out? The policy is paid up. The details of the policy are below.
Single Paid Premium - $5,600
Cash Surrender Value - $11,000
Loans - None
Surrender Charges - None
Federal Taxes Owed - ?
State Taxes Owed - ?
Local Taxes Owed - ?
Single Paid Premium - $5,600
Cash Surrender Value - $11,000
Loans - None
Surrender Charges - None
Federal Taxes Owed - ?
State Taxes Owed - ?
Local Taxes Owed - ?