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President Joe Biden delivers remarks on the May jobs report in Rehoboth Beach, Delaware.

Estate planning with life insurance

As Congress wrestles over Biden’s agenda, some advisors have been proactive with clients, exploring ways to lessen the possible impact. If taxes rise, some clients may buy more life insurance to cover the bills, said Herron. 

Clients with more than $11.7 million, the estate tax exemption for 2021, may buy a so-called irrevocable life insurance trust, using the policy to pay taxes at death. But those with fewer assets may have life insurance without a trust, he said.

The biggest perk of using life insurance for estate planning may be peace of mind, Herron said. 

Clients often feel a sense of relief knowing their heirs will receive tax-free proceeds to cover necessary expenses — such as levies, funeral costs, administrative fees or unpaid debt — when they are no longer around.

“I think insurance is going to continue to be a tool used by our wealthy clients,” Hazard said.

More here from CNBC.com:  Advisors say life insurance may help offset Biden’s proposed tax hike (cnbc.com)