Estate tax question

[cheral]

What is the name of your state?
Virginia
My mother has recently drawen up a will in which she included a insurance policy to be placed in a trust for care of my sister who is mentally disabled. My sister currently draws SSI. She also put in the will that her home be transferred to my sister for her life, then it should go to the remaining siblings. My question is what will be the tax liabilities, will there be a gift tax on the insurance policy? Will there be estate taxes on the property?
Any guidance would be much appreciated.
Thanks

A Senior Judge told me I should post this under Tax.

[abezon]

Everything will be subject to estate taxes when mom dies. When mom dies, have the house appraised (you want it appraised high). When your sister dies, the difference between the FMV at that time & the appraised value at the time of mom's death is long term capital gain to the remaining heirs. It will be taxable on the heirs' tax returns.