7 Reasons Why Life Insurance Trusts Will Always Make Sense

When Donald Trump signed the Tax Cuts and Jobs Act of 2017 (TCJA) into law in December of 2017, the estate planning market was altered. The law raised the federal estate tax exemption from $5.49 million to $11.18 million, and many believed the need for a life insurance trust to house their policy was diminished. However, even after TCJA, there are several excellent reasons to have a life insurance trust, and the policy owner should consider these facts. Political winds change. Yes, Donald Trump campaigned against the estate tax in 2016, and after the election, he did lower the

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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

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Now Is a Good Time for TOLI Trustees to Talk to Their Clients

An online survey about life insurance found 33% of life insurance policy owners do not understand how their policy works. (1) The other 67% probably think they know how it does, but I imagine they would appreciate a refresher lesson on how it actually works. Even if they do understand how it works, do they understand how a decade of low interest rates and equity market volatility affected their policy? TOLI trustees should be reaching out to grantors to explain to them how their policy works. Doing so provides the grantor with greater clarity about their policy and gives

The Life Insurance Trust Company Process

In our last post, we highlighted the fact there finally is a solution for those TOLI trustees that share a common problem - orphan trusts - life insurance trusts with grantors who have no other business relationship with the bank or trust company. That solution is Life Insurance Trust Company (LITC), an affiliated company started under the ITM TwentyFirst umbrella.  Many TOLI trustees have reached out to us in the past year to describe the issues they have with orphan trusts, namely, they represent mostly liability and little revenue. Most TOLI trustees do not have the economy of scale

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Life Insurance Trust Company Completes Bulk Transfers of Life Insurance Trusts

Establishes unique and proven process to transfer ILITS from Banks and Trust Companies Sioux Falls, South Dakota, September 18, 2018: Life Insurance Trust Company (LITCO), the only trust company focused exclusively on life insurance trusts, recently completed two court approved bulk transfers of life insurance trusts. The financial institutions involved moved portions of their Irrevocable Life Insurance Trust (ILIT) portfolios to LITCO as part of plans to scale back servicing as a fiduciary for ILITs. “We launched LITCO in late 2017 as a unique option for financial institutions seeking to exit the ILIT business, while providing an excellent alternative

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