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2 Answers

Does the IRS garnish life insurance payouts?

Asked by: in Life Insurance

My grandfather recently passed away with a lot of debt to his name as well as past due tax issues with the IRS.  He had a good life insurance policy.  Will the IRS be able to garnish is life insurance payout for his tax debts?

2 Answers

  1. Agent


    mikematosinsurance - Independent on Sep 04, 2011 Reply

    I suppose the Insurance isn’t enough to settle the debt he had with the IRS? If this is the case, you should visit with an attorney. Chances are there may be some legal loop holes to jump through.


    Joel Matos
    Life Insurance Arkansas
    P.O. 575 DeWitt, Arkansas 72042
    870-344-2432
    http://www.cheaplifeinsurancerates.webs.com

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  2. Agent


    runawaykinms - Independent on Nov 22, 2011 Reply

    That is a very good question!

    However, it can be difficult to answer, because it will depend on the laws in your particular state. In some states there are laws that protect the beneficiary’s money from the creditors of the insured, but I am not sure if that would apply to the IRS. As mentioned above, you will want to meet with an estate planning lawyer, financial advisor, or insurance agent in your state to be sure.


    Matthew Sacksteder
    Sack Financial
    2711 Buford Rd, Suite #217
    http://www.virginia-life-insurance.com

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