When Is Life Insurance Included In The Gross Estate? 
In general terms , life insurance proceeds are included in the estate when owned personally . This may or may not present a problem depending upon the exemption in the state of residency . The federal unified credit is over 5 million for an individual . But if federal or state transfer taxes are a concern , you may consider an irrevocable life insurance trust as your policy owner . Consult an attorney before assigning or changing ownership of personal property . 