u/Patient_Ad_3748

Seeking tax advice: My 92 y/o grandfather is looking to surrender his whole life insurance policy due to his wife, whom recently passed, took out a loan on it and never paid any on the interest so the annual interest payment, which is in Jan, is pretty high- more than his fixed income can afford. The taxable amount is more than the cash value so the question is, with the tax implications, what should be his best move concerning filing/claiming taxes at the beginning of the year? He’s ok with not leaving anything to his daughters and has already handled his final expenses (burial plan).

Any advice/guidance is appreciated. Thanks in advance.

Seeking tax advice: My 92 y/o grandfather is looking to surrender his whole life insurance policy due to his wife, whom recently passed, took out a loan on it and never paid any on the interest so the annual interest payment, which is in Jan, is pretty high- more than his fixed income can afford. The taxable amount is more than the cash value so the question is, with the tax implications, what should be his best move concerning filing/claiming taxes at the beginning of the year? He’s ok with not leaving anything to his daughters and has already handled his final expenses (burial plan).

Any advice/guidance is appreciated. Thanks in advance.