Question
What is the name of your state?What is the name of your state?Oklahoma
I am the beneficiary of life insurance, which is in an interest-bearing "Asset Account". Do I have to report and pay tax on this amount? If so, is there a place I can put it, to avoid paying a large amount of tax this year?
Thanks.
Answer
If you have received the money already and it is bearing interest, then yes you would be liable for taxes on the earnings. As far as where to put it to not pay taxes, you probably don't have too many choices. Depending on the amount of money you have you might be able to put some into a Roth IRA or check into tax free municipal bonds. You are best to check with a financial advisor on this one