Exempt property is property in an estate that is not included in when determining the estate's values for tax purposes. State laws vary as to what is considered exempt. Typically, any contributions to charitable organizations are exempt from taxes. If there is a surviving spouse the homestead, automobiles and personal property up to a certain dollar amount are exempt from being taxed or considered part of the estate for tax purposes. There are both Federal and individual state guidelines that should be checked, which is why having an estate planner is beneficial. Life insurance policies are also considered exempt in the majority of situations although there are some cases where the policy could be considered part off the estate, such as if the beneficiary of the policy was the estate- meaning it was to be divided among all heirs.