Split-dollar rollout is the process of unwinding a split-dollar life insurance arrangement, typically by terminating the agreement and repaying or otherwise satisfying the premium provider's interest in the policy. Rollout can occur at retirement, upon reaching a target cash value, or at another triggering event. Common rollout methods include using policy cash values to repay loans, substituting collateral, refinancing on new terms, or transferring interests as taxable compensation or gifts. The goal is to shift full policy ownership and benefits to the intended party, such as an executive or irrevocable trust, in a controlled and tax-efficient manner. Because rollouts can trigger income, gift, or estate tax, careful planning and modeling are essential.

Advisors discuss split-dollar rollout strategies years before an anticipated event so that policy design, funding, and documentation all support a clean exit. They work with CPAs and attorneys to compare options such as loan repayment from cash value versus bonus-funded repayment, and to model resulting tax consequences. In estate planning, rollout may involve forgiveness of split-dollar loans as gifts, or restructuring into new intra family loan arrangements. Carriers may require specific forms or endorsements to document the termination of split-dollar agreements. Understanding split-dollar rollout helps advisors ensure that arrangements designed for flexibility do not become permanent, inflexible structures that conflict with long-term planning goals.