My dad recently passed away and had a life insurance policy from his work of $100,000. He listed my sister that was taking care of him as the sole beneficiary and she is instructed to then divide the policy between the rest of the children. She was the one who had power of attorney over his finances. So far, so good.
My question is that how does my sister go about disbursing this money? I told her it may not look kosher giving out checks for $25K and if she does, that we may have to pay taxes (or she may have to pay taxes) on the amount. My dad thought he was doing what would be easiest but did he inadvertently cause a problem?