3 Trends in Corporate ILIT Administration That You Should Be Aware Of

There are three continuing trends with respect to TOLI management in the corporate fiduciary space.  If you find yourself managing or overseeing TOLI at a bank or trust company, I’m sure you are seeing some of this play out in your own department. TREND #1 Overdependence on Support Software If used correctly, ILIT support software is great for minimizing potential administrative miscues.  Many of [...]

TOLI Trustee Alert: Managing Variable Universal Life Policies Comes with Specific Challenges

Variable universal life (VUL) policies, whose sales took a nosedive after the 2007-09 market crash, have had a resurgence. In 2018 sales jumped, with annualized premiums from new VUL sales increasing by 14% over the prior year. (1) VUL policies provide the policy owner with the opportunity to invest in the equity market. The cash value in the policy is held in separate accounts and [...]

TOLI Trustee Alert: Oops, the Policy Lapsed…Now What?

The most common fear for a life insurance trustee is that somehow the ball is dropped and the policy in their care lapses. After all, a trust-owned life insurance (TOLI) trustee, even if they are not sophisticated in all the nuances of life insurance policy management, should at least be able to keep the policy in force. But unintended lapses do happen, and when they [...]

Take the TOLI Challenge: In a Permanent Life Insurance Policy, the Cost of the Policy is Equal to the Premium – Yes or No?

The answer is an emphatic NO. Some permanent life insurance policies, specifically guaranteed universal life (GUL) and Whole Life (WL), have required premiums, though WL out of pocket premiums can be reduced by dividends, paid-up addition cash values or policy loans. But the premium paid is not the actual cost of the policy and finding the underlying costs on the policies is a challenge. For [...]

Take the TOLI Challenge: Can You Answer This?

What steps should you take if a grantor says they want to surrender their policy? In the decade-plus that we have been managing life insurance for TOLI trustees, we have noticed that the weak link in their services usually is remediation. The inability to analyze policy options in changing situations is an area of future liability. Some trustees we have spoken with have surrendered policies [...]

Professional Designations: Training Your Staff Helps Your Team and Your Firm

Over the years, we at ITM TwentyFirst have been leaders in peer education. The TOLI Handbook, a free download available here as a PDF, provides industry peers with a single source guide for managing trust-owned life insurance (TOLI) trusts and policies. We have, over the years, provided hundreds of hours of professional CE for several professional designations. Our staff is encouraged and incentivized to seek [...]

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 [...]

Upcoming Webinar June 24th – Comparing the Discretionary, Delegated, and Directed Trustee’s Role and the Trust Protector

Directed Trusts are a growing reality as more states adopt the Uniform Directed Trust Act. Delegated trusts are as old as the UPIA, but are you really prepared to confidentially articulate the difference between the two models?  Most trust organizations are being asked to consider one or both of these options by someone in their market or the bank. This webinar will compare and [...]

Upcoming Webinar May 27th: Minimizing Trustee Liability in a Changing Market

Minimizing Trustee Liability in a Changing Market Judith Pearson, Nomadx Solutions Risk management is always more challenging in a volatile environment, especially in a society that has grown more litigious.  Learn how to minimize your liability by taking a few simple steps. The trust world has become rich with opportunity. Learn how to navigate this complex market while dodging landmines of personal liability. Understand [...]

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