Estate Tax Asset Protection

Protect what you built

Assets above the federal exemption face a 40% estate tax — due in cash, generally within nine months. This strategy uses life insurance inside an Irrevocable Life Insurance Trust (ILIT) to deliver the liquidity exactly when it's needed.

Strategy One of six · Presented by Neal Brown

The Numbers at a Glance

From the example presentation below

Federal estate tax rate

40%

On assets above the exemption

2026 individual exemption

$15M

Double for married couples

Liquidity window

9 months

Estate taxes are generally due in cash

Example leverage at age 96

3.78×

$3.78 of benefit for every $1 paid in

How the Strategy Works

The problem

Estate taxes must generally be paid in cash within 9 months of death
Heirs can be forced into fire-sale prices on businesses and real estate
Tax erosion means heirs receive far less than intended

The solution

Life insurance held in an Irrevocable Life Insurance Trust (ILIT)
Death benefit passes income-tax-free and outside the taxable estate
Immediate, guaranteed liquidity exactly when it is needed

The example illustration

$1,105,000 annual premium for 4 years ($4.42M total)
$16,695,757 projected death benefit at age 96
$12,275,757 net estate benefit above premiums paid

The Example Presentation

Non-premium-financed example, Symetra Accumulator Ascent IUL 3.0, illustrated at a 7.03% non-guaranteed rate.

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Want this illustration with your numbers?

This example was prepared for a "Valued Client." A personalized presentation uses your age, your assets, and your goals. Reach out to schedule a conversation with Neal Brown.