Are life insurance proceeds taxable for the care of an individual in a nursing home?

Generally, life insurance proceeds are not taxable income. However, there are exceptions to this rule. If the proceeds are paid to a third party, such as a nursing home, for the care of an individual, the proceeds may be taxable. The taxability will depend on the specific facts and circumstances of the situation, including the terms of the life insurance policy and the relationship between the individual receiving the proceeds and the person who paid the premiums on the policy. To ensure compliance with tax regulations, it is advisable to consult with a tax professional when dealing with life insurance proceeds used for care expenses.