1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Yes, life insurance is part of an estate after death if the person dying owned the policy. If the deceased person was the Insured and someone else (or a life insurance trust) was Owner of the policy, the life insurance proceeds are not part of the deceased person's estate.
    Answered on August 14, 2013
  2. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    The are many varying circumstances for life insurance proceeds. Life insurance is paid directly to the benefactresses of the life insurance policy. Generally most married couples use the marital deduction act to pass the proceeds and all other assets to the surviving spouse. If the proceeds remain with the surviving spouse, they are subject to federal and state estate taxation if the proceeds and all other assets exceed the federal unified credit and the state exemptions.If that possibility exists, then the policy or policies should be owned day one by an Irrecoverable Life Insurance Trust to avoid inclusion in the estate.
    Answered on August 14, 2013
  3. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    Life insurance MAY become part of the deceased's estate if it is set up that way. Usually that's only the case when the assets of the insured are over the estate tax threshold, currently about $5.4 million. Then an insurance policy designed to pay the estate tax may be designed specifically for that purpose. Otherwise typically life insurance will have named beneficiaries and the death benefit will go directly to them, not the estate.
    Answered on August 16, 2015
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