Life insurance is a popular tool that is often used in planning a person's estate. This also applies of course to the estate planning regarding a married couple and their children. Traditionally, in Texas and elsewhere, the purchase of life insurance was designed to pay taxes at death.
For a married couple, the estate tax exemption can now be parlayed into an equivalent of over $10 million in exemptions before a federal estate tax must be paid. With federal estate taxes largely off the table for most estates, other estate planning uses have come to the forefront. One obvious use is to pay for the immediate expenses of death, such as burial and funeral expenses, along with administrative fees and state tax assessments.