222 / Does the outright gift of a life insurance policy qualify for the gift tax annual exclusion, even if the gift is to a minor?

Yes.

The exclusion can be applied against the value of the policy at the time of the gift and to subsequent premium payments.¹ An outright gift of a policy to a minor qualifies for the exclusion even though a guardian is not appointed.² A gift of life insurance under a Uniform Gifts to Minors Act or a Uniform Transfers to Minors Act generally qualifies for the gift tax annual exclusion. All but a few states have modified the Uniform Act to include gifts of life insurance. Any transfer of property to a minor under statutes patterned after either the model act or the uniform act constitutes a complete gift for federal gift tax purposes to the extent of the full fair market value of the property transferred. Such a gift generally qualifies for the gift tax annual exclusion authorized by IRC Section 2503(b).³ If the subject of the gift is life insurance, its “full fair market value” would presumably be established by the same rules applicable to gifts of life insurance generally ( Q 119).