I am no financial adviser, but life insurance funds are tax free and if the assets are passed within a trust, the trusts are set up to pay taxes every year, so the new owner doesn’t pay taxes individually, but become the new trustee & beneficiary along with any others named. The trust can outline how the money is spent on beneficiaries and they won’t pay taxes. Like medical bills, education, trust expenses etc. This is my understanding in the US. Us common folk can use different tools to avoid taxes as well.