When Is Life Insurance Part Of An Estate? 
First of all , you really need to talk to an estate planning attorney about this . We insurance guys know a lot about estate planning , but when there is a lot on the line , you need to consult with the expert . Plus , frankly , unless we have a special professional liability policy to cover this area , we dont have the insurance protection needed to cover our mistakes . One other point : make sure the attorney with whom you speak is a specialist in estate planning . Not real estate , not commercial law , not litigation . You want to get the best advice possible . Too much money is involved to speak with someone who only has a general knowledge of the field . Having said that , I can offer the following : If you designate yourself as the owner , could the benefit amount be included in your state ? Yes . If you designate the estate as the beneficiary , could the benefit amount be included in your estate ? Yes . If the beneficiary predeceases you , could the benefit amount end up in your estate ? Yes . Now : can you avoid these issues ? Yes . Could you use a trust as a tool for doing so ? Yes . Do you have a choice among different kinds of trusts ? Yes . Can you see why you need to talk to an expert on estate law to make a final decision here ? There are a number of routes to take . Whatever route you choose , you still need your broker to audit your policy on a regular basis . He or she needs to make sure it continues to meet your original expectations . If you do use a trust , a policy audit will definitely be beneficial to your trustee . That person could have legal liability if the insurance policy underperforms . A policy audit could head off trouble . 