Is Life Insurance Part Of An Estate After Death?
.JPG)
63333 POINTSContact Meview profilePeggy MacePROMost 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+11+1 this answer
0flag this answerview more answers by Peggy Mace
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaThe 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, 2013flag this answer
5877 POINTSview profileStan Cox IIInsurance Adviser - Broker, SC Insurance Services, Oahu, HawaiiLife 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, 2015flag this answer
Did you find these answers helpful?
Yes
No
Go!
Add Your Answer To This Question
You must be logged in to add your answer.
