The conversation between human and AI assistant.
How is life insurance part of your estate?
A little bit. But can you explain how it becomes part of your estate?
Sure! If you own a life insurance policy and you pass away, the proceeds from that policy would typically be paid out to your beneficiaries tax-free. However, if you don't take certain steps to prevent it, the value of that policy could be included in your taxable estate, which means your beneficiaries may have to pay estate taxes on it.