Is Life Insurance Taxable To The Beneficiary In North Carolina? 
When the Beneficiary of a life insurance policy in North Carolina receives life insurance proceeds upon the death of the Insured , normally , there is no income tax imputed . Federal estate taxes will apply for estates over $ 5,250,000 . The state estate tax in North Carolina was repealed in 2013 , so that residents of North Carolina who pass away after 1-1-2013 are exempt from state estate taxes . 