The insurance trust owns your insurance policies for you. If the trust buys the insurance, it will not be included in your estate. So the proceeds, which are not subject to probate or income taxes, will also be free from estate taxes. Insurance proceeds are available right after you die. So your assets will not have to be liquidated to pay estate taxes.
Life insurance can be an inexpensive way to pay estate taxes and other expenses.
So you can leave more to your loved ones. An insurance trust has three components. The trustee you select manages the trust. And the trust beneficiaries you name will receive the trust assets after you die. Not if you want the tax advantages we've explained.