There are several very good reasons for using a life insurance trust. First, by purchasing the insurance through a life insurance trust, as you have seen, it is excluded from your taxable estate. Hence, the proceeds, which are already free from probate and income taxes, will also be free from estate taxes. Second, life insurance proceeds are available immediately, even if you die tomorrow. Therefore, you would not have to worry about your estate having to be quickly liquidated at fire sale prices to pay estate taxes.