Trust Officer Turned Detective:
How LITCO Located Missing Beneficiaries
BACKGROUND:
At Life Insurance Trust Company (LITCO), we have a long-standing reputation for handling complex beneficiary cases with diligence and care. As the first and only trust company to focus solely on Irrevocable Life Insurance Trusts (ILITs), we are strategically positioned to protect our clients’ assets within the trust and preserve family wealth. Our team of life insurance trust specialists oversees and manages all policies to maximize results for grantors and beneficiaries. With over 50 years of industry experience, LITCO has administered more than 7,000 policies and reviewed policy face amounts exceeding $15 billion. One of our trusted team members recently managed a particularly challenging death claim involving multiple contingent beneficiaries, highlighting LITCO’s unwavering commitment to locating and assisting all beneficiaries, regardless of the difficulties involved.
THE CHALLENGE:
Upon receiving a death claim from an insurance company on an insurance policy held in an ILIT with Life Insurance Trust Company as the trustee, the trust officer assigned to the account encountered significant obstacles in locating one of the primary beneficiaries. Initial attempts to find this beneficiary were troublesome, and it soon became apparent why: the individual was homeless. This added layer of complexity made the search exceedingly difficult.
Further complicating the situation, the primary beneficiary’s father had faced financial difficulties and had pre-deceased his children. With three out of five direct beneficiaries also deceased, the family tree was intricate and extended, involving additional wives and grandchildren. This created a sprawling network of contingent beneficiaries with limited initial information that the trust officer needed to track down.
THE RESULTS:
Through exhaustive research and the use of The Berwyn Group’s (a sister company of LITCO) BeneSearch(R) solution, the trust officers meticulously pieced together the family tree, identifying not just the initial beneficiaries, but also eight additional contingent beneficiaries. Among these, one was incarcerated, and another was homeless, requiring specialized efforts to communicate and ensure their inclusion.
Our dedicated trust officer’s relentless pursuit culminated in a breakthrough: they located all necessary beneficiaries and facilitated communication with them. The team managed to finalize the trust, expanding from the original five to ten, including the two surviving original beneficiaries and eight newly identified grandchildren.
After about 6 months, the trust was successfully paid out to the identified beneficiaries. Notably, the incarcerated beneficiary expressed immense gratitude for being found and included, highlighting the unique and personal impact of LITCO’s efforts. Similarly, a grandchild thanked the team profusely for their thorough and respectful handling of the trust.
Read more about this case study and how LITCO works for grantors and beneficiaries while involving their financial teams.
