Legal Question in Wills and Trusts in New York

Life insurance does not count towards the estate tax exemption nor is it generally taxable (there are a few exceptions). As of right now, the exemption is far higher than $800,000 (it is currently $5,000,000/federal, but scheduled to drop to $1,000,000 in 2013). NYS currently has a State estate tax exemption of $1,000,000. Please note that these are all subject to change.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.