When Naming Your ILIT Trustee, Did You Make the Easy DecisionITM TwentyFirst2019-04-08T12:00:54-05:00
Naming a non-professional is a mistake for many reasons
Sometimes the worst decisions we make are made because of two reasons – first, they are easy to make and second, the decision does not cost us anything – we can make that decision without incurring a cost.
Nowhere is this more evident than in the naming of a trustee for your ILIT.
Naming a non-professional as your ILIT trustee is problematic because:
They do not have the requisite knowledge needed to manage a life insurance
They do not have the time.
They do not have a procedure in place to manage your ILIT
They do not have the wherewithal to understand the trust document.
They have trouble being unbiased about beneficiaries.
You are putting your friend, family member or business associate in a position
with potential liability.
Unlike a corporate trustee, a non-professional trustee
may pass away long before you do.