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 [...]

Upcoming Webinar May 13th: An Insider’s Guide to Life Insurance in a Challenging Environment

A decade-plus of historic low interest rates and a financial crisis unlike any we have seen before has negatively impacted life insurance.  Do you know why and what you can do to deal with it?  You will if you take part in this fast-paced webinar.  By attending, you will: Learn which policies will be most affected and how to manage them effectively going forward. [...]

FREE CE credit for CFP® and CTFA – from ITM TwentyFirst University

ITM University is back! Over the years, ITM TwentyFirst University has provided continuing education to thousands of Trustees, Fiduciaries, and Wealth Advisors. It is now back with a new slate of webinars providing relevant information you can use right now. The course topics will include real life case studies that can be applied to day to day situations. Subject matter is designed to help [...]

2020-04-16T09:05:12-05:00April 15th, 2020|The TOLI Handbook, Webinar|0 Comments

How About Just Doing the Right Thing?

During an ITM TwentyFirst University webinar on trustee liability, I described a replacement case that came into our remediation department. A grantor with a whole life contract in his trust had decided to stop gifting. His agent advised him to complete a 1035 exchange of the cash value from the existing policy into a new current assumption policy. The exchange, with no other premium, would [...]

Cost of Insurance Finger Pointing: Who Is To Blame?

The cost of insurance (COI) increases of the last 18 months have wrecked estate plans and created financial hardship among policy owners. The negative effect is clear – some policy carrying costs have more than doubled (see:Transamerica Cost Increase Causes Premium to Maturity to More Than Double: A Case Study for Trustees).  What is not so clear – who is to blame? No less than five [...]

Recent Court Case Identifies An Obvious Tax Liability: One TOLI Trustees Sometimes Miss

A recent US Tax Court Memo identifies the financial risk in unwittingly or intentionally mismanaging a life insurance policy. In 1987, a policy owner purchased a single premium variable life policy (since this was pre Code Section 7702A, it was not considered a modified endowment contract) with a payment of $87,500. The policy contract permitted the owner to take loans from the policy, allowing any [...]

401(k) Lawsuits Flourishing – Is TOLI (Trust Owned Life Insurance) Next?

In the past few years, we have seen a rash of lawsuits against 401(k) plan sponsors. Most of these suits allege that plan sponsors shirked their fiduciary duties, usually for allowing excessive fees or self-dealing. Well-known firms like Lockheed Martin and Boeing have signed multimillion-dollar settlements with their employees. Even financial firms that provide 401(k) plans to the public have recently been sued by their [...]

2016-08-17T10:54:34-05:00August 17th, 2016|General Interest, News, Policy Management, Webinar|0 Comments

Trustee Beware: Policy Replacement Ahead

The TOLI world has been altered with the estate tax law changes of the last few years.  Today’s wealthy couple can pass on more than ten million dollars in assets to their heirs before incurring any estate tax liability.  In the last decade this has decreased the number of individuals subject to the estate tax by more than 80% (1).  Because of this, the number [...]