1. Peggy Mace
    COO and Senior Agent, Outlook Life, All 50 States
    Life insurance proceeds do not go to the estate unless the beneficiary chosen on the policy is the estate, or if the beneficiary is a minor and unable to legally receive the proceeds, or several other circumstances. Life insurance that is left to a person or trust will bypass probate and avoid income tax. However, the value of life insurance owned by the deceased, and left to anything but an irrevocable life insurance trust, is counted in the value of the estate for estate tax purposes.
    Answered on July 12, 2013
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