Who Pays Estate Tax On Life Insurance? 
Who pays estate taxes on life insurance ? Well the estate executor is usually the one charged with payment from estate assets for any estate taxes due . Are there estate taxes due on life insurance ? Yes and no , depending on how well a person has planned for that situation . Life insurance can easily be taken out of the estate tax tab by moving ownership out of the taxable estate , via trust or other trusted family member -LRB- not spouse -RRB- . You can leave ownership oflife insurance in the estate , buteven though the proceeds go elsewhere , the amount paid out becomes an asset to theestate . 