Should life insurance be a part of your estate plan?
Abstract: Today, the federal gift and estate tax exemption stands at $5.45 million, so fewer families are facing estate tax liability. This begs the question: Can life insurance continue to play an important role in estate planning? The answer is: Yes. This article details why, even though a policy’s proceeds may no longer be necessary to provide liquidity to pay estate taxes, even nontaxable estates may have a need for a policy’s various other potential estate planning benefits.