Calculator Last reviewed: 2026-10-03 Part of Tools

Do You Need an ILIT? Estate Tax Projection Calculator

Written and reviewed by Hans Goldstein, licensed insurance producer, NPN 20602398 · CA Insurance License #4273294
Last reviewed October 3, 2026 · Published October 3, 2026

How to use it: enter today's net worth, a growth rate and the years until your estate settles. The calculator projects your estate, compares it with the federal exemption ($15 million per person, $30 million for a married couple in 2026, indexed after that at the rate you assume), estimates federal estate tax at 40% on the excess, and shows the life insurance face that would cover it if owned by an ILIT.

Do you need an ILIT? Estate tax projection

Rough federal estimate only. Your numbers stay in your browser unless you ask for the written read below, and then only a net worth range is sent.

Net worth today ($)

Filing status at death

Growth per year (%)

Years until the estate settles

Assumed exemption indexing after 2026 (%)

State of residence

What the calculator does, and does not, do

Does: grow your net worth at a flat rate, grow the 2026 exemption at the indexing rate you choose, and apply the 40% top rate to the excess (IRC §2001). For married couples it assumes portability is elected so the survivor can use both exemptions.
Does not: model state estate taxes (it flags them), deductions for charity or debts, lifetime gifts already made, or the actual IRS inflation adjustment. The 2027 exemption is set by the IRS each year; the indexing rate here is your assumption.
Privacy: the math runs in your browser. If you ask for the written read, only a net worth range is sent, never the exact figure.

Video: Do You Need an ILIT? Estate Tax Projection Calculator in about 90 seconds

1 min 26 sec video. AI narration of this page, accuracy-checked against the review; the tables on this page are the current source. Education, not personal advice.

Video transcript

Enter today's net worth, a growth rate, and the years until your estate settles. The calculator projects your estate, compares it with the federal exemption $15 million per person, $30 million for a married couple in 2026, indexed after that at the rate you assume, estimates federal estate tax at 40% on the excess, and shows the life insurance face that would cover it if owned by an ILIT. So it does some pretty heavy lifting for you. It grows your net worth and that 2026 exemption, and then it applies the 40% top rate to the excess. Exactly. That 40% is under IRC section 2001, by the way, and it also assumes portability for married couples, which is a huge deal. Portability, meaning the surviving spouse can use the unused exemption. Right, yeah. But as helpful as the calculator is, we really need to cover what it does not do. Oh, for sure. It strips out the messy stuff. Yeah. I mean, it doesn't model state estate taxes, or any deductions, or lifetime gifts you've made. And I have to emphasize this vital context. The 2027 exemption is set by the IRS each year. The indexing rate here is your assumption.

Reading your result

If the projection shows a federal estate tax, the "face needed" number is the death benefit that would pay it in full. It has to be owned by an ILIT or the proceeds themselves are added to the estate (IRC §2042) and taxed too. Married couples usually cover this with survivorship life insurance, because the unlimited marital deduction pushes the tax to the second death.

If the projection shows no federal tax, an ILIT can still make sense for control, creditor protection, liquidity for an illiquid estate (a business, farm or real estate), or equalizing heirs. And if you live in, or own property in, a state with its own estate tax, the state line may matter more than the federal one. California has no estate or inheritance tax.

Estate planning

Want a written read of your projection?

Send your email and I'll send a one-page read: projected tax, ILIT fit, single or survivorship, and the pay period that fits your gifting budget.

We’ll email it to you. Hans Goldstein · NPN 20602398.

Rather talk it through? Or book 15 minutes on Hans’s calendar.

Next step: price the policy, not just the tax

We do not show a premium estimate here. ILIT premiums depend on age, health, single or survivorship, and pay period (which has to fit your Crummey gifting budget), and we will not publish premiums we cannot source. Hans runs real quotes on your numbers, guaranteed design first. For the design choice, read GUL vs IUL.

General education, not tax or legal advice. Tax treatment depends on your facts and on current law, which can change. Talk to your CPA or estate attorney.

Projected over the exemption? Get the ILIT policy design right first

Send your situation. Within one business day you get a written read: whether an ILIT is worth a conversation with your estate attorney, single-life or survivorship, guaranteed or indexed, and a pay period that fits your Crummey gifting budget.

Hans designs and places the policy. Your estate attorney drafts the trust; your CPA handles Form 709.

Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.

Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer

Frequently asked questions

How is the estate tax calculated in this tool?

It grows your net worth at your chosen rate, compares the result with the federal exemption grown at your assumed indexing rate ($15 million single or $30 million married in 2026), and applies the 40% top federal rate to the excess. It does not model state estate taxes, deductions or prior gifts.

What is the federal estate tax exemption in 2026?

$15,000,000 per person and $30,000,000 for a married couple using portability, with a 40% top rate. The figure is indexed for inflation from 2027.

Does California have an estate tax?

No. California has no estate or inheritance tax. Property you own in a state that has one, such as Washington or Oregon, can be taxed there.

Why does the life insurance have to be in an ILIT?

If you own a policy on your own life, the death benefit is included in your taxable estate under IRC §2042, so part of the coverage meant to pay the tax would itself be taxed. An ILIT owns the policy instead.

Is my net worth stored?

The calculation runs in your browser. If you request the written read, only a net worth range is sent with your email, not the exact number.

Sources

Hans Goldstein, CA Insurance License #4273294 · NPN 20602398 · Goldstein & Co. LLC dba Goldstein Insurance Services, CA License #6016830

Contact: hans@hansgoldstein.com · 213-414-2808

General education, not tax or legal advice. Tax treatment depends on your facts and on current law, which can change. Talk to your CPA or estate attorney. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Guarantees apply only to the contractual terms of the policy. Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change. Hans is not an attorney. An ILIT is drafted by your estate attorney; coordinate premium gifts and Form 709 filings with your CPA. Hans is paid a commission by the insurer if you buy a policy through him. For life insurance, ask and he will tell you what he earns on your specific policy. Product and company names are trademarks of their owners. Goldstein Insurance Services is an independent agency, not affiliated with or endorsed by any insurer named here. Life insurance requires underwriting; not everyone qualifies. This page describes products in general terms; read the policy and the insurer's disclosures before you buy.