Is My Life Insurance Part of My Taxable Estate?

When you are planning your estate, you should create a statement of net worth to inventory your assets. This is simply a balance sheet. You enter your assets and liabilities, and you determine exactly what you have to give to your loved ones, and you gain an understanding of your debt. This is important for multiple different reasons. Estate tax exposure is one important thing to take into consideration when you are evaluating the extent of your assets. The federal estate tax can heavily impact your legacy, given the fact that it carries a 40 percent maximum rate. The estate tax is a factor for people who have been very successful from a financial standpoint, but most people do not pay the tax. There is a federal estate tax credit or exclusion. This is the amount that you could transfer to people other than your spouse tax-free. In 2015, the amount of this credit is $5.43 million. Life Insurance Proceeds If you have insurance policies on your life, and they are in your personal posses


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