Is Life Insurance Part Of The Estate After Death? 
Yes , the person who owned the policy and left life insurance will have the proceeds of the life insurance counted as part of the estate upon death . If the amount of the total estate is low enough -LRB- this year , under $ 5,250,000 -RRB- , estate taxes should not have to be paid . If you have a large estate , you can possibly transfer ownership of your policy to an Irrevocable Life Insurance Trust . Talk to a tax attorney and your life insurance agent to discuss whether this is a good idea for you . 