The Life Insurance Trust Company Can Help Grantors Save Thousands on Their Gifting – Part 2 of 2 Part Series

In our first post, we described a life expectancy report and the policy management process called premium optimization.  In this post, we will show you how we use these tools to minimize the carrying costs on a policy on an older aged insured to potentially save thousands of dollars. In this case, we had a male who had purchased a $2M current assumption universal life policy about 25 years ago, and though he had not paid the premium in all years, there was still around $200,000 in cash value in the policy.  The level premium illustration that the carrier

The Life Insurance Trust Company Can Help Grantors Save Thousands on Their Gifting – Part 1 of 2 Part Series

The Life Insurance Trust Company is unlike any other trust company in the country.  Focused on a single asset – life insurance – and created by the premier manager of life insurance portfolios in the country, we provide a level of service to grantors (and their advisors) that is unparalleled. The company is an affiliated company of ITM TwentyFirst, a firm that manages thousands of policies for trustees, banks, legal and accounting firms and sophisticated institutional investors nationwide. ITM TwentyFirst provides the back-office services for the trust company and has developed several sophisticated tools used to maximize the value

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The Self Evaluation for ILIT Trustees

As a trustee, are you able to answer “yes” to the following questions? Are all the policies under your care financially sound? Are you able to assure the grantor(s) that his/her estate and financial planning expectations will be met? Are you familiar with the myriad of issues that could negatively affect the trust’s policies? Do you have the necessary knowledge of life insurance to perform the needed evaluations? How effective are your current risk management strategies? Are you doing your best to protect the value of the trust? If continued premiums are required and the grantor fails to make

The Active Management Required for Trust Owned Life Insurance

How trustees review and manage life insurance policies varies widely and few, if any, have formal review policies and procedures in place despite the various regulations and the vast array of duties and responsibilities assumed by them. There are many professional trustees who have retained services to regularly review and assist with the management of these specialized assets. However, for many trustees, the extent of reviewing life insurance policies consists of monitoring the insurance carrier’s financial strength ratings, which is perhaps the least likely source of trustee liability. Some trustees will also obtain an in-force illustration, which is a

The Many Duties and Responsibilities of ILIT Trustees

Trusts have long played an essential role in estate planning for many individuals and families.  The assets held in trust can vary from real estate to stocks, bonds, insurance policies, jewelry, and other collectibles.  This deep-dive will focus on trust held life insurance policies, which can be considered a special asset class. For some, trust held life insurance has become a black box full of mysteries and administrative nightmares. Why Are Trust Held Life Insurance Policies so Difficult to Manage Life insurance policies are complex and often misunderstood financial instruments that require active management by the policy owners. These

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