Question

What claims may life settlement proceeds be subject to____________.

1) Creditors
2) Beneficiaries
3) Tax authorities
4) All of the above

Answer 1

Life settlement proceeds may be subject to creditors, beneficiaries, and tax authorities.

Step-by-step explanation:

Life settlement proceeds may be subject to creditors, beneficiaries, and tax authorities. When someone sells their life insurance policy in a life settlement, the proceeds become an asset that can be potentially claimed by creditors to satisfy outstanding debts. Beneficiaries of the policy may have a claim to the proceeds if they are named as beneficiaries in the policy. Additionally, life settlement proceeds may be subject to taxation by tax authorities.