Take the TOLI Challenge: Only Permanent Life Insurance Policies Can Be Sold, True or False?

Updated 6/29/2020, originally posted 4/19 Previously, we started the TOLI Challenge with the question: What is most important when determining the liability of a trustee’s actions? Click here for that answer.  Today, we have a follow up true or false question.   Only permanent life insurance policies can be sold in the life settlement market, True or False? It may surprise you that the answer [...]

Prudently Managing ILITs – It Is More Than Just Tracking a Policy

Updated 5/14/2020, Originally posted 3/12/2019 When we first ventured into the trust-owned life insurance (TOLI) servicing business, our lead product was a policy tracking and trust administration system - what is known today as InsuranceIQ, and it was light years ahead of anything TOLI trustees had at their disposal. At the time, most trustees simply got an in-force ledger every couple of years, along with [...]

Take the TOLI Challenge: Can you answer this?

Updated 4/9/2020, Originally Posted 2/19/2019 What is most important when determining the liability of a trustee’s actions? Over the years, we have noticed that the knowledge of TOLI trustees varies from trust company to trust company. After publishing the TOLI Handbook in 2018, we thought we would “chunk it down” with the TOLI Challenge—a series of questions designed to test the knowledge of the typical [...]

Business Continuity – Unique Asset Management Reality Check

Millions of businesses worldwide have drafted or purchased business continuity plans, some have even practiced or simulated implementation of said plans, but few ever dreamed a worldwide pandemic would force these plans into action.  The rapid spread of the Covid-19 virus has impacted all of humanity, including thousands of businesses which include fiduciary services. For those who serve as a fiduciary or provide fiduciary support [...]

TOLI Trustee Alert: More of Your Clients Will Be Living to 100 and That Could Be a Problem

Updated 3/12/2020, Originally posted 2/5/19 A little over five years ago we wrote about a little-known problem for trust-owned life insurance (TOLI) trustees - clients living to age 100 - the maturity age for many older life insurance policies. The problem is that many policies in their portfolio will not pay out a full death benefit at maturity and the chances of insureds living to [...]

Best Interest Standards for Life Insurance Would Be a TOLI Trustee’s Best Friend

As a TOLI trustee, you have a fiduciary responsibility to ensure that every transaction - either a new policy sale or replacement is not only suitable for your client, but also in your client’s best interest.

Informing Grantors About Their Policy Makes Good Business Sense

Updated 2/19/2020 Originally posted 12/11/2018 An online survey about life insurance found that 33% of life insurance policy owners do not understand how their policy works. (1) I suspect that this number is probably low. Perhaps the other 67% think they know how it works, but I imagine they could get a refresher lesson. Even if a policy owner does understand how it works, do [...]

2020-02-19T16:04:48-06:00February 19th, 2020|General Interest, Policy Management|0 Comments

TOLI Trustee Alert: The Taxation of a Life Settlement Policy Sale

Updated 1/29/2020, originally posted 10/26/18 In our last two blogs, we discussed when and how to sell a life insurance policy.  In this blog entry, we want to talk about the taxation of a life insurance policy sale for the seller. The death benefit of a life insurance held in trust is received free of both estate and income taxes, however, if a TOLI [...]

The TOLI Handbook – Chapter 15: Understanding Life Expectancy Reports

Updated 11/20/19 Originally posted 8/15/19 We recently wrote about remediation and the challenges that TOLI trustees have when managing a policy.  Remediation is not just developing the best options for an under performing policy, increasingly it means maximizing the value of a policy that a grantor believes is no longer needed, or one whose expected funding has stopped. These decisions must be well-thought-out and every [...]