Is Inherited Life Insurance Taxable? 
Typically , no . Then again , it depends on who was the owner of the policy , and a few other factors . You also need to be concerned about state estate taxes as well as federal estate taxes . A question like this should be brought to the attention of an attorney . And not just any attorney one who specializes in estate planning . If structured correctly , life insurance can be a wonderful way to transfer wealth to the next generation . It could also be a great way to make charitable gifts . All without paying estate taxes . 