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So far mbrohawn has created 135 blog entries.

Trustee Alert: New Tax Law Changes (Simplifies) Tax Reporting On Life Settlement Sales

Back in May we wrote about the need for trustees to be aware of life settlements. A life settlement can provide a TOLI trust with more value than a policy surrender. The role of a TOLI trustee dictates that all assets are maximized – including “unwanted” life insurance policies. In the past, tax reporting around a life settlement was onerous, primarily because of an IRS ruling enacted in [...]

TRUSTEE ALERT- Why We Started An Affiliated Trust Owned Life Insurance (TOLI) Trust Company

On November 21, 2017, ITM TwentyFirst received a South Dakota charter for an affiliated trust company, the Life Insurance Trust Company, the first trust company focused solely on life insurance trusts.  On December 22, 2017 President Trump signed into law The Tax Cuts and Jobs Act with sweeping tax changes that included a doubling of the federal estate tax exemption amount to just over $11 [...]

New York State Proposes “Best Interest” Standard in Sale of Life Insurance and Annuities

Last week, the New York State Department of Financial Services proposed an amendment to state insurance regulations that would, according to its December 27th press release, “adopt a “best interest” standard for those licensed to sell life insurance and annuity products.” This new amendment “would require that the product that best reflects the customer’s interest be offered ahead of what is most profitable to the seller.” [...]

2018-02-09T11:00:07-06:00February 9th, 2018|Uncategorized|0 Comments

John Hancock To Raise Cost Of Insurance (COI) On Performance Universal Life Policies

In February of last year, we reported on limitations placed on inforce illustrations for John Hancock Performance universal life policies. At that time, the carrier announced a “temporary” situation, saying they were unable to provide current inforce illustrations because “regulatory standards that govern illustration practices . . . prevent us from illustrating currently payable amounts based on our current non-guaranteed elements.” In that report, we mentioned that [...]

The Start of Life Insurance Dividend Season

Earnings season for investors are the months that most corporations release their financial results.  Falling in the months of January, April, July, and October after the books are closed on the last quarters financials, they not only tell past performance, but in many instances, are a predictor of future earnings.  Bellwether stocks like Wal-Mart, Caterpillar and JP Morgan, offer an indication of the future performance [...]

2018-02-09T09:09:35-06:00February 9th, 2018|Uncategorized|0 Comments

TOLI Trustees Should Not Throw Away A Tax Opportunity With The Policy

We have previously written about how changes in the estate tax laws have some grantors questioning their need for a large tax-free death benefit.  We can provide many reasons why retaining a policy still makes sense, but there may be other reasons (bad policy performance, cost of insurance increase, etc.) that necessitate a policy replacement, or even surrender. The IRS allows a tax-free exchange for [...]

2018-02-09T09:06:58-06:00February 9th, 2018|Uncategorized|0 Comments

New York State Issues New Regulations Regarding Cost of Insurance (COI) Increases

In November of last year we reported on a regulation floated by the New York State Department of Financial Services to “govern life insurance company practices related to increases in the premiums” of life insurance and annuity policies. The goal was to “protect New Yorkers from unjustified life insurance premium increases.” This week, the department issued their final regulation. According to a press release announcing [...]

Lincoln National Consolidated COI Lawsuit Update – The Case Is Moving On

A little over a year ago we posted a blog about a Lincoln Financial cost of insurance (COI) increase on Legend Series Universal Life policies issued between 1999 and 2007 that originated at Jefferson Pilot (Lincoln Financial purchased Jefferson Pilot in 2006).  Earlier this year we reported on a class action lawsuit filed in in the Eastern District of Pennsylvania against Lincoln.  Other lawsuits soon followed, and in May we reported that [...]

Transamerica Cost Of Insurance (COI) Case Results In Win for Plaintiffs

Less than two weeks ago we reported on an interesting COI increase lawsuit. In that case, DCD Partners v Transamerica Life Insurance Company, a Los Angeles church pastor who enlisted an outside investor to finance life insurance policies providing burial funds for congregants had filed suit, along with the investor, against Transamerica for a 50% COI increase in policies issued to the group. In their lawsuit, the [...]

WSJ Article Highlights Interesting Cost of Insurance Case

An interesting cost of insurance (COI) increase lawsuit has been playing out over the span of two years in a Los Angeles courtroom.  The case was featured in a Wall Street Journal today as the case is set to go to trial next week.  (1) The case involves a Los Angeles church pastor and an investment group that financed life insurance policies on his church [...]