Insurance policy cash value as an asset?

[nowpastdue]

What is the name of your state? FL

Ramona has insurance policies on four of her children, Fred, Nancy, Edward, and Daisy. Ramona is the named beneficiary on the policies, she has been making all the premium payments, and the cash "surrender" value of the policies range from $2,500 to $6,000 on the policies. It is the wish of Ramona that upon her death each child (all adults) keep their own respective policies and make their own premium payments. Edward is the named executor. Upon the death of Ramona, do the cash "surrender" values of the policies become assets of the estate in general or are the individual values attributed to the each insured as if it were additional money for that person?
Real estate and actual cash in bank is outlined in will as well as division of personal property. The specific case of insurance cash value is not.

 

[Dandy Don]

They will become assets of the estate.

She needs to take special care to either mention these in her will or write a letter stating her specific instructions of what she wants to happen with these policies. Without instructions, the executor could cash these policies in and put the money into the estate.

She would also be wise to check with her insurance agent (if she has one) to discuss whether what she wants to do is wise and to also let the agent and/or the insurance company know what her intentions are for these policies. Would the children be old enough to be able to afford to continue paying the premiums, and would they even want to do that?

What is the dollar amount of the face value of the policies (what they would be worth if all the premiums were paid in full and the death of one of the parties occurred)?

DANDY DON IN OKLAHOMA

 

[nowpastdue]

Dandy Don

Thanks for the reply.

To clarify, in the above scenario, I am "Edward" and the executor of "Ramona's" will.
I am unaware of the face amount of the policies but I would imagine $10-25 thousand on each policy and I know that we are covered by at least 2 policies each and in one case 3. "Ramona" has mentioned that she may be considering giving three of her grandchildren some cash, which would entail a new will. If that comes about it would be an opportune time to add her wishes re the policies in her will proper. In the meantime I think it is an excellent idea to put her wishes down in writing as to the policies in a separate document.
As executor I planned to bring up the policies at the reading of the will. I was going to give them the basic info like amounts, premiums, etc and give them the option of taking over the premiums after a suitable period. For up to a year the premiums could be paid out of the estate.
Yes, I was aware as executor I could cash in the policies and add them to the estate but that is not her wish if my siblings wish to keep their respective policies. The ages are 58,57,43, and 41 so it might be advantageous to keep the policies in view of the fact rates are quoted based primarily on age, so to start over would be more expensive.
I sat there for a long time trying to find the right way to ask the question I wanted answered, I think maybe I missed it. Primary to my mother's wishes are that our cups are filled equally, so to speak.
If all the policies were turned in for cash value it would be simple. If everyone wants to keep theirs or if 1 or more want to keep or turn in is where the problem comes in. Since the policies were bought as different times and/or gained cash value at different rates the difference in amounts for each may be somewhat striking.
I just want to lessen the possibility of hard feelings if possible. We all get along well now but to many times I've seen things like this go sideways with other families.