Understanding Estate Taxes
17. Remove insurance from estate
Here's something else you can do to remove assets from your estate.
What if you didn't have to include the death benefits from your life insurance policies in your taxable estate? Think how much that would cut your estate taxes!
Well, you can transfer your existing life insurance policies right out of your taxable estate and into an irrevocable life insurance trust. That's a separate trust that is NOT included in your taxable estate.
Here's how it works.