The bottom line Does naming an estate cause life insurance to go through probate? Usually, yes, because the insurer pays the estate and the proceeds generally enter probate instead of going directly to a named person. The National Association of Insurance Commissioners explains that estate-designated proceeds typically go through probate, although state rules and policy … Read more

The bottom line Can insurer pay estate without probate opened? Sometimes, but the answer turns on the policy’s beneficiary designation and state procedure. A named person or trust may claim directly. When the estate is named, a personal representative usually must establish authority before the insurer can safely pay. A life insurer does not decide … Read more

The bottom line Does an ilit trustee have to send crummey notices every year? Usually, an ILIT trustee should send a notice whenever the trust receives a contribution that gives beneficiaries a withdrawal right, following the trust instrument’s timing and delivery rules. The IRS does not create one universal annual notice schedule. A Crummey notice … Read more

The bottom line Probate costs for life insurance payable to estate have no single national percentage. When the estate is the beneficiary, the death benefit is paid into estate administration, where state rules and the estate’s debts and expenses can affect timing and what heirs receive. A named beneficiary may keep the claim outside probate, … Read more

The bottom line Life insurance strategies for estates above the tax exemption often use an irrevocable life insurance trust to keep a policy’s death benefit outside the insured’s gross estate. For people who die in 2026, the IRS lists a $15 million basic exclusion, but ownership, timing, gifts, and state law can change the result. … Read more

The bottom line Does a divorce decree require life insurance? Not automatically. A court or an approved settlement can require a policy, annuity, or trust to secure support after a divorce. The controlling document is your final decree or incorporated agreement, and the details depend on the state and the wording of that order. Life … Read more

The bottom line When do life insurance proceeds become part of probate? They generally become part of probate when the estate is the beneficiary, or when no surviving beneficiary can receive the death benefit under the policy and its governing law. A valid individual, trust, or other non-estate beneficiary usually receives the proceeds outside probate. … Read more

The bottom line Can a divorce decree require a former spouse to maintain life insurance? Yes, a court-approved order may require coverage to secure child support or spousal support, but the enforceable duty depends on the decree and applicable state law. Read the order closely for the beneficiary, amount, duration, ownership, and proof requirements. A … Read more

The bottom line How estate tax exemption applies to life insurance depends first on policy ownership: if the insured owns the policy or retains ownership rights at death, the death benefit can enter the federal gross estate; a 2026 federal basic exclusion amount of $15 million may shelter it, but inclusion is not the same … Read more

The bottom line Can second to die fund estate taxes? Yes, a survivorship life insurance policy can provide cash after the second spouse dies, when a federal estate tax may become due. The fit depends on the taxable estate, ownership structure, policy terms, and whether the benefit is large enough to cover projected tax and … Read more