Estate equalization is the strategy of using life insurance or other assets to provide comparable value to heirs when illiquid property-like a business or farm-passes to one child. Rather than dividing the asset, parents leave it intact and "equalize" with insurance for non-recipient heirs. The approach preserves operating control while promoting fairness and reducing conflict.

Families with a business or farm fund life insurance for non-operating heirs to avoid forced sales or shared control. Advisors size coverage to appraisal values, adjust for debt, and revisit after major growth. Equalization preserves enterprise continuity while treating children fairly.