Strategic Partnerships

Life Insurance Trust Company partners with some of the biggest banks and trust companies in the country

What a Strategic Partnership With Life Insurance Trust Company Offers

Life Insurance Trust Company is a strategic partner to some of the country’s largest banks and trust companies. Through these strategic partnerships, we act as a successor trustee and provide best-in-class ILIT fiduciary services to our partners’ clients and their advisors. ¬†Since life insurance is the only asset we manage. our team is able to provide the experience and support needed to manage ILITs without competing for your other business. Our trust professionals are supported by proprietary technology developed exclusively for managing irrevocable life insurance trusts. With over 25,000 policies under management spanning 20 years, our team of experts has the experience to provide your advisors and clients unmatched support when working with ILITs.

The Market Trends Affecting ILITs

Most corporate trustees are no longer aggressively promoting irrevocable life insurance trusts. Many freely admit they do not want the asset and acquiesce only as an accommodation for clients with other assets under management. Very few trustees view ILITs as a viable business.

  • The change in estate tax laws has led some grantors to believe their ILIT is no longer needed. With the higher federal estate tax exemption, many believe their estate will not be subject to federal estate tax.

  • The low-interest-rate environment has caused policy performance issues leading to an increase in policy carrying costs. Often, grantors can no longer afford to fund the rising premiums.

  • Some grantors have experienced financial downturns that limited their ability to pay premiums or lessened their need for a trust to pay future taxes.

  • Trustees have raised fees, especially on stand-alone ILITs, encouraging some to decant their trust or seek alternative trustee options.

  • Some grantors have become disgruntled, believing trustees have not justified fees and name an individual as trustee. We can assume a much higher failure rate with a friend, business acquaintance, or family member as trustee.

Find Out How a Strategic Partnership Can Help You and Your Advisors

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