Is Life Insurance Included In An Estate? 
When life insurance is left to a beneficiary who is a person or a life insurance trust , the life insurance does not normally go through probate , and no income taxes are paid . However , the policy proceeds will be included in the value of the estate when the deceased owned the policy -LRB- or if the deceased transferred ownership to someone else within three years before death -RRB- or when proceeds were paid to the executor of the deceased 's estate . 