Is a persons life insurance considered part of their estate?
Question Details:
The previous answer is correct although there are certain exceptions. If the beneficiariy on the life insurance policy is the deceased person's estate or if the beneficiary predeceased the policy owner and there are no contingent beneficiaries listed, then, under those circumstances it would be part of the probate estate.
In Minnesota, if the probate estate is insolvent, our probate code (Minn. Stat. 524.6-207) allows non-probate assets (like a life insurance policy) to be brought into the probate estate to pay debts, taxes, and expenses of administration.
No. Life insurance proceeds have nothing to do with an estate. The reason is the certain assets pass outside of an estate; this includes life insurance proceeds. Therefore, a beneficiary under a life insurance policy is entitled to such proceeds free and clear of any estate obligations to beneficiaries, creditors, etc.
