Question from one of my readers: ” Are life insurance benefits taxable in South Carolina?”

Charleston, South Carolina, is known as The Holy City due to the prominence of churches on the low-rise cityscape, especially the numerous steeples that dot the city’s skyline. Charleston is a notable tourist destination, with streets lined with grand live oaks draped with spanish moss. Along the waterfront in an area known as Rainbow Row are many beautiful and historic pastel colored homes. The city is also an import port, as it is the second largest container seaport on the East Coast.

Thank you for asking Bob.

One of the still remaining, best aspects of Life insurance, is that the insurance industry has gotten congress to retain that payouts of life insurance to a beneficiary are NOT TAXABLE.

That is why it is very important that you should always have your insurance policy payable to a specific beneficiary…it passes very quickly, directly to them, outside of the estate and being outside the estate, it is exempt from estate/inheritance and transfer taxes or fees.