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people are unaware that the proceeds of their life insurance is actually includable in their taxable estate if they own the policy this could bring the total value of their estate to more than the amount that sheltered from a state tax by the applicable exclusion amount for people who pass away in 2022 that exemption was 12.06 million dollars in 2023 itamp;#39;s up to 12.92 million dollars for a married couple that comes to a combined exemption of nearly 26 million dollars a large amount most people wonamp;#39;t have to worry about it but things like life insurance can quickly add to an already large estate guests might get that number