When you are calculating the value of your estate, you only count the cash value of your life insurance policies as an asset. After your death, the death benefit left to your beneficiary will be counted as part of your estate for federal estate tax purposes. However, if the beneficiary is your spouse, your estate will pass to them tax free. If any of the life insurance proceeds are left when the spouse dies, that is when they will be included in the estate.
Of course, it is important to talk to a tax attorney for specific situations and advice. This is general knowledge and may not be accurate for your specific situation.
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Of course, it is important to talk to a tax attorney for specific situations and advice. This is general knowledge and may not be accurate for your specific situation.