This is one of several NebFacts providing information on farm and ranch estate planning topics. Titles of related estate planning publications are listed at the end. While the information contained in this document is thought to be accurate, it should not be used as a substitute for legal advice on matters related to business organization, taxation, estate planning, life insurance, or other business and financial management matters. Consult with your legal and tax advisers before making decisions.
Life insurance can be an important estate planning tool.
Under appropriate arrangements, the face value of life insurance is not subject to estate, inheritance, or gift taxes. Thus, there are tax incentives for including life insurance in your estate plan. Since this publication can provide only partial information on a very complex topic, secure assistance and guidance from your legal and tax advisors before making decisions. The death benefit from a life insurance settlement has many potential uses. It can pay taxes and related estate settlement expenses, fund business agreement implementation, pay operating expenses during the transition after a family member's death, and provide funds for survivors' living expenses.