tax on income

How is NJ and Federal Estate and income tax treatment of pensions and life insurance?
Serving as executor – both parents died in 2005. What is the estate and income tax handled for both New Jersey and Federal income from pensions and life insurance / Term Insurance. Not sure what as income is taxable and what's taxable estate. Also not sure who pays the beneficiary or estate taxes on the income tax – assuming there is an income tax debt.
The pensions are taxable. Life insurance is not. Each recipient is responsible for any tax obligation than the amount by which their income for the current year will be paid added.
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