Under the laws of all states in this country as well as Internal Revenue Service regulations, a life insurance policy stating a specific beneficiary as the recipient of the policy is not an asset of the deceased person's estate unless the decedent names himself or herself as a beneficiary under the life insurance policy.This is why most estate planners when they are dealing with life insurance policies do not want them to be part of the estate of the person on whose life is being insured.Life insurance policies naming third party beneficiaries are considered "gifts" to the third party beneficiary and are deemed a taxable event for income tax purposes.If you are the beneficiary under your mother's $10,000 life insurance policy and she passes away with the policy as designated, the $10,000 pay out is yours to keep and Title 19 has no entitlement to the insurance policy proceeds as designated.Good question.