Proceeds of life insurance paid due to the death of the decedent are included in the decedent's gross estate if the decedent had the right to designate the beneficiary of the policy.

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This is true according to the Internal Revenue Code, section 2042. If the decedent had the ability to change the beneficiary designation, the proceeds of the life insurance policy are considered part of the decedent's gross estate.

Proceeds of Life Insurance Paid Due to the Death of the Decedent