The Many Reasons to Hire a Corporate Trust Owned Life Insurance (TOLI) Trustee

Life insurance is an important investment. Trust-owned life insurance policies are inherently significant sums of money and therefore it's vital that they're managed appropriately.  Policies of a million dollars or more are common: many policies are valued at tens of millions of dollars. So why is it that these policies are often treated with less care than other investments? Some grantors, hoping to save money, look to a non-professional trustee, usually a family member or friend, or a professional (attorney, CPA, advisor) they already have a relationship with. These people are not trained to act as a trustee, and

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Survey Points Out Why Family Offices Are Looking to the Life Insurance Trust Company as a Partner for Their Clients’ Life Insurance Trusts

The family office space has grown dramatically in the last few years. Today, there are over 2,300 family offices that have a minimum of $50 million in assets, which is up 23% from just a year ago. (1) The industry is exploding. These family offices provide a wide array of services to their clients, including the implementation of life insurance strategies as an impactful part of the estate plan, a high priority among the ultra-high net worth clients these firms cater to. According to a survey of 366 multi-family offices, nearly four out of five are outsourcing life insurance

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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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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