Is my life insurance counted in the value of my estate?

Minneapolis, MN estate planning attorney Cameron R. Kelly talks about how your life insurance factors in to the value of your estate.

Contact Cameron R. Kelly

Email: [email protected]

Phone: (715) 381-7112

Transcript:

Life insurance is counted and that’s call it a sneaky asset because most people when they think about their net worth they don’t’ think about their life insurance as part of that unless it has a cash value. And when they come into my office, they say I have a relatively simple, relatively small estate but they might have between a couple, a million and a half or two million dollars’ worth of life insurance. Just based on that they’re already really close to the tax level in the state of Minnesota the tax exemption, which is around two million dollars. So once you add that to their house and their bank accounts and their investments people who live a fairly modest lifestyle have a taxable estate.