<prompt> Human: So on January 1st my oldest sister passed away unexpectedly. Very tragic and it has been such a hard time for myself and family. That being said we all knew my sister had some sort of life insurance. My parents Filled out the paperwork and didnt think twice about it. Yesterday, we got a letter in the mail stating in 2003 my sister amended her policy and named me the sole beneficiary. I stand to receive 150,000. My first question is what sort of tax burden does this carry? My precursory search tells me it is not taxable but Im not sure. I intend to open college accounts for my two kids and my niece and nephew. 100K total. I intend to clear my remaining debts, about 15K. That leaves me with 35,000. What in the hell do I do with that? Any advice would be most welcome.  <response>: My first question is what sort of tax burden does this carry?0What in the hell do I do with that?Sorry for your loss. 