Trust Owned Life Insurance
Policy Audits and Reviews
CPAs and Attorneys that act as trustees on TOLI have a high degree of responsibility to make sure that the policy’s performance is keeping up with all of it’s original objectives.
Changes in the investment and interest rate climate for the last few years has made it extremely difficult to be certain that these policies will perform as planned.
In the last decade the insurance industry has undergone great turmoil. Many rates of return are well below historic averages. The result – many life insurance policies will not perform as intended.
If left unattended, many life insurance policies will lapse and the trustee will likely be sued!
Being trustee of another persons affairs is a privilege that requires the utmost fiduciary responsibility. Life insurance auditing and review should be performed once a year to make sure that the insurance policy is performing well. We are specialists at helping CPAs and Attorneys prudently review insurance policies to optimize their design and effectiveness in protecting both grantor and beneficiary.
How a Trustee Might Be Sued
- Negligence in maintaining the lift insurance policy
- Bad Investment Decisions
- Poor life insurance design or an improper policy
- Poor selection of a vendor
- Not living up to UPIA standards
Avoiding Litigation
When establishing a trust with permanent life insurance, it is designed to last a lifetime. Life Insurance is a complex financial instrument and must be monitored to make sure that it is performing as expected. Changes in the interest rate and investment climate in the last few years may have greatly affected the performance of the life insurance policy. Change in the life insurance marketplace can provide tremendous options to improve this negative state of affairs.
Please speak with us concerning how we can help you and your client get the proper benefit from this extremely important asset.
