Until now there was no good solution to exit unwanted ILITs.
Now there is Life Insurance Trust Company.
Trust owned life insurance (TOLI) trustees are questioning why they continue to serve as trustee for this unique trust asset, particularly when they represent a small portion of revenue and potential liability. Banks with stand-alone irrevocable life insurance trusts (ILITs) are looking for a new home for their ILITs. Accounting and law firms realize that life insurance represents a specialized asset that needs specialized care. Trust companies and family offices understand that they do not have the requisite skills to provide the same level of care to this asset that they can to other assets. Many individuals serving as trustee, whether it be a friend or relative, may not have the requisite skills to effectively manage this type of asset.