IS IT TIME TO ELIMINATE THE RISK AND COST OF ADMINISTERING ILITS?
When you choose Life Insurance Trust Company as successor trustee, we assume all liability and ILIT administration duties, backed by the ITM team you already know and trust.
TOLI management is becoming more difficult every year.
are you prepared to protect your clients and your team from these growing risks?
The latest trust-owned life insurance statistics* reveal a significant shift in policy performance since 2022—highlighting an increasing need for proactive management and expert oversight.
- 48.3% of all policies are now projected to lapse prior to maturity (up from 27.7% in 2022)
- 34.5% of policies have a high risk rating
- 32.8% will lapse before life expectancy (a sharp rise from 11%)
- 49.1% of no-lapse guarantee provisions have been compromised (previously 30%)
- Loan issues have surged by 60%, with 11.2% of whole life policies now at risk of triggering a taxable event (up from 7%)
*Based on internal analysis of ITM’s portfolio of over 9,500 trusts
WHY UPGRADE FROM TOLIMONITOR TO LITCO?
The risks associated with trust-owned life insurance are growing—and so is the burden on your team. Upgrading to Life Insurance Trust Company shifts that responsibility off your shoulders. We assume the legal liability, handle the administration, and you continue working with the same trusted ITM professionals behind the tolimonitor solution.
Trust Administration
- Notify grantors when premiums are due
- Handle Crummey notices to beneficiaries
Policy Reviews
- Annual policy reviews to identify performance issues
- Analyze new or replacement policies for risk prior to acceptance into trust
Policy Management
- Ensure that premiums are paid
- Ensure that policies are in good standing
Trust Management Reporting
- Generate comprehensive reports on all trust activity
- Simplify internal and regulatory audits
Policy Remediation
- Provide solutions for troubled policies, changes in premiums and riders
- Appropriate documentation to mitigate liability
Branded Client Communication
- Customize all grantor and beneficiary communication with your branding
ELIMINATES THE COST AND RISK OF ADMINISTERING ILITS AND MANAGING POLICIES.
eliminate liability
Administering life insurance policies comes with great legal and regulatory risks, which LITCO assumes as trustee.
we don't compete
Once a policy funds, the referring bank or trust company has the first right of refusal to take the funded trust back.
eliminate costs
With LITCO as your trustee, you eliminate annual expenses required to administer ILITs.
ARE YOU READY TO ELIMINATE THE RISKS AND COSTS OF ADMINISTERING ILITS IN-HOUSE?
Name Life Insurance Trust Company as trustee of your book of irrevocable life insurance trusts and we assume the liability associated with the administration process. With our team managing the day-to-day trust administration, we improve your operational efficiency by allowing your team to focus their efforts elsewhere.
A REAL EXAMPLE OF HOW LITCO ELIMINATES ILIT-RELATED WORKLOAD
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.
THE LITCO DIFFERENCE:
Because this client transferred their trustee duties to LITCO, they saved their team months of work and the expense of tracking down beneficiaries. While tolimonitor by ITM is an excellent solution for the day-to-day administration of a trust, naming Life Insurance Trust Company as your successor trustee relieves your team of time consuming trustee duties.
Life Insurance Trust company serves 7 out of the top 10 largest banks and trust companies
partner with LITCO and your team will gain access to real-time trust data online!
Our online portal allows authorized advisors to access trust account documents, annual reports, and additional correspondence from any device. This 24/7 access helps ensure your team has up to date documents and the information necessary to better manage your client’s assets.
