Irrevocable Life Insurance Trusts in Henderson, Nevada

If you live in Henderson, there is a good chance you planned your way here. Maybe you retired from California, built a business in Green Valley or Seven Hills, or bought a first family home in Inspirada or Cadence. Whatever brought you, you now live in a state that is widely regarded as one of the friendliest in the country for trusts. If life insurance is part of your plan, an irrevocable life insurance trust, usually called an ILIT, can help make sure the payout goes where you want it and stays out of your taxable estate.

This page focuses on what is different about Nevada. For a plain-English walkthrough of how these trusts work, read our irrevocable life insurance trust guide. Western Pacific Insurance is an insurance agency, not a law firm. Your estate planning attorney drafts the trust, and we help design and place the policy that the trust owns. Nothing on this page is legal or tax advice.

Nevada has no state estate tax

The Nevada Department of Taxation states that no Nevada estate tax filing is required for deaths on or after January 1, 2005. In practice, that means Nevada has no estate tax, and it has no personal income tax either. For most Henderson families, the only death tax to think about is the federal estate tax. In 2026, the IRS sets the federal basic exclusion amount at $15,000,000 per person, and a married couple can often protect up to $30,000,000 by using portability.

With a threshold that high, many families will never owe a dollar of estate tax. But if you own a growing business, a rental property portfolio, or a large permanent life insurance policy, it is worth running the numbers. A policy you own outright counts as part of your estate. A properly set up and properly run ILIT keeps the death benefit out of that total.

Why Nevada is known for trust planning

Nevada has built a reputation for trust-friendly laws. A few features matter most for a long-term trust like an ILIT:

• Long trust life. Under NRS 111.1031, interests in a Nevada trust can last up to 365 years, so a trust can be designed to hold and invest money for your children, grandchildren, and beyond.
• No state income tax. Money the trust keeps and invests after the death benefit is paid is not taxed by Nevada, though federal income tax can still apply to what it earns.
• Modern trust laws. NRS chapters 163 and 166 cover trusts and spendthrift protections, which can help shield a beneficiary’s share from creditors.

Whether any of this fits your family is a question for your attorney. It is one reason people who move to Henderson often decide to refresh an older estate plan soon after they arrive.

Community property and your policy

Nevada is a community property state. Under NRS 123.220, property acquired during a marriage is generally presumed to belong equally to both spouses. So if a policy on one spouse was paid for with community funds, both spouses may have a stake in it. That can change how an existing policy moves into an ILIT and how premium gifts to the trust are handled.

Attorneys often solve this by having both spouses sign, by making gifts from separate property, or by putting an agreement in writing. Bring your marriage history, plus any prenuptial or postnuptial agreements, to your attorney meeting so nothing surprises you later.

New policy or existing policy

If you transfer a policy you already own into the trust and pass away within three years, federal law pulls the death benefit back into your estate. When the trustee buys a brand new policy from the start, that three-year rule generally does not apply. We can compare new single life and second-to-die designs so your attorney has clear choices to weigh. To get a feel for how much coverage makes sense, start with our how much life insurance Henderson families need guide.

Moving from California with a trust

Many Henderson households arrive with a California revocable living trust and a handful of policies bought years ago. A revocable trust is not an ILIT, and it usually does not keep life insurance out of your estate. After a move, take time to check who owns each policy, who is named as beneficiary, and whether your trust documents need updating for Nevada. If your home is held in a trust, also read Nevada trust homeowners insurance to make sure your homeowners policy matches your deed.

Business owners in Henderson

If you own a closely held company, life insurance often has two jobs: paying for a buy-sell agreement and leaving cash for your family. These usually call for separate policies with different owners. Our guide to Henderson buy-sell and key person insurance covers the business side. The coverage meant for your family is the kind an ILIT typically holds.

Questions for your Henderson attorney and agent

• Once life insurance is counted, is our estate close to the federal exemption?
• Should the trust buy a new policy, or should we transfer one we already own?
• Do community property rules affect our current policies or the gifts we make to pay premiums?
• Who will serve as trustee, and who sends the yearly Crummey notices?

Talk to us in Henderson

Western Pacific Insurance is based in Henderson and works with families across Nevada, Arizona, California, and Utah. If you are comparing areas, we also have pages for Phoenix, San Diego, and Lehi. For the basics of coverage close to home, see our Henderson life insurance page and our individual life insurance overview. Bring a summary of your current policies and your attorney’s contact information, then call 702-932-3105 or request a quote online.