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IUL Gift Tax Strategy

Gifts that keep giving

Annual gifts fund policy premiums inside a gift-tax-efficient design. The policy builds tax-advantaged value, then illustrates two decades of distributions to the next generation — with meaningful legacy value still remaining.

Strategy Five of six · Presented by Neal Brown

The Numbers at a Glance

From the example presentation below
Total premiums (example)
$380,000
$38,000 gifted annually for 10 years
Annual distributions
$486,528
Ages 66–85 — twenty years
Total distributions
$9.73M
Under the 6.69% illustrated ledger
Age-90 net death benefit
$3.96M
Legacy value after distributions

How the Strategy Works

Stage one — fund

  • Annual gifts of $38,000 fund policy premiums
  • Ten payments create a $380,000 total premium design
  • Gift-tax-efficient use of the annual exclusion

Stage two — grow

  • Policy builds tax-advantaged value before distributions begin
  • Illustrated at the current non-guaranteed 6.69% ledger
  • Indexed universal life chassis with downside protection

Stage three — distribute

  • $486,528 of illustrated annual distributions, ages 66–85
  • $9,730,560 in total distributions vs. $380,000 of premiums
  • $2.68M of net policy value still remaining at age 90

The Example Presentation

Example based on a Symetra Accumulator Ascent IUL 3.0 illustration, current non-guaranteed 6.69% column. Values are not guaranteed.
Download the presentation (PDF) Request a personalized version

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.