Life Insurance for Estate Planning in Nevada

Life insurance provides immediate, guaranteed liquidity at death—exactly when estates need it. It pays estate taxes, equalizes inheritances, replaces charitable gifts, and does so completely income and estate tax-free when structured properly.

As of 2024, the federal estate tax exemption is approximately $13.61 million per person ($27.22 million for married couples). However, this is scheduled to sunset in 2026, potentially dropping to around $7 million. Life insurance planning should account for this uncertainty.

An Irrevocable Life Insurance Trust (ILIT) owns the policy and is the beneficiary. Because you don't own the policy, the death benefit isn't part of your estate. You can't create an ILIT with an existing policy without triggering a 3-year lookback rule.

If you're leaving a family business to one child, other children may feel shortchanged. Life insurance can "equalize" by providing cash to other heirs equal to the business value. This keeps the business intact while treating all children fairly.

Yes! "Wealth replacement" involves donating assets to charity (receiving tax deductions) while using life insurance to replace that value for heirs. Your family receives the same inheritance, and the charity benefits from your generosity.