Life insurance proceeds are generally not taxable. Retirement income (401k) is taxed as ordinary income. You may be able to withdraw it over your life expectancy and pay tax on the proceeds annually. Talk to a tax attorney or tax accountant to find your best advantages. If there was a will you may have to speak with a probate lawyer. Professionals are your best bet...The rate depends what tax bracket it puts you in...best of luck
If you are going to inherit a life insurance policy and a 401-K from your father by law, then it will be taxed. The rate of taxing an inheritance varies with state. Consult an attorney for more details.
Please for Gods sake do not listen to Julius comment ... Life insurance death benefit proceeds are NEVER taxed... 401 k proceeds are "usually" always Taxed because the cash inside is usually growing taxed deferred.. Please see a tax advisor to determin the amount you need to set aside
Insurance is not taxed federally. 401-Ks are. If you roll it into your own 401-K, the tax will be deferred. If you cash in immediately, you'll have to pay either income tax or an inheritance tax. I'm not familiar with taxes as much as insurance. Keep in mind states may have different policies than the feds.