CALIFORNIA FAMILY LAW
...Income Tax Matters
......Spousal Support
.........Deductibility
............Payments After Death
8 Cards On This Topic:

Spousal support (alimony) is nontaxable to supported spouse if there is a liability to make payments beyond his/her death. (Statutory language.)

Determination of whether payments are a substitute for alimony, and hence nondeductible, depends on all of the facts and circumstances.

As W failed to prove by clear and convincing evidence that she and H agreed in writing that s/s payments would continue past her death, H's payments correctly found to be alimony, taxable to W.

Where alimony terminates upon death of recipient under state law, order need not expressly provide.

Although MSA did not state that payments designated as s/s terminated upon W's death, that requirement was provided by state law.

Child support portion of MSA payments not deductible despite being labeled deductible, because they would continue past payee’s death.

H’s alimony payments to W were nondeductible as he had obligation to make substitute payments after W’s death; intention of state court that payments be deductible did not control.

Order for family support must terminate at death of recipient spouse to be deductible by paying spouse as alimony.