Monday, January 30, 2006
Trust Owned Life Insurance: Is It An Accident Waiting To Happen?
Trust owned life insurance is often central to many client plans, enabling clients to provide for survivors, cover estate tax liability planning, balance inheritances among heirs and meet charitable objectives. Trusts can offer clients professional management, the peace of mind that their concerns will be addressed after their death and a level of privacy not offered with other planning devices.
Deciding on a trustee is a critical and personal decision and choosing a family member, a family friend or a professional trustee all offer certain benefits. In many cases, however, trustees may not be managing the life insurance as actively as they may manage other assets. In such cases, this could put a client's goals and the care of beneficiaries at risk-setting up the possibility of a lawsuit.
This article will explore the standards increasingly applicable to trustees and trends in recent court cases that should be of concern to all trustees. It also will examine how trustees may or may not be handling TOLI. But the best place to begin is to consider the many changes the life insurance industry has seen in recent years which might affect trust owned life insurance.
Trust Owned Life Insurance: Is It An Accident Waiting To Happen?
Source: EFMoody.com
Deciding on a trustee is a critical and personal decision and choosing a family member, a family friend or a professional trustee all offer certain benefits. In many cases, however, trustees may not be managing the life insurance as actively as they may manage other assets. In such cases, this could put a client's goals and the care of beneficiaries at risk-setting up the possibility of a lawsuit.
This article will explore the standards increasingly applicable to trustees and trends in recent court cases that should be of concern to all trustees. It also will examine how trustees may or may not be handling TOLI. But the best place to begin is to consider the many changes the life insurance industry has seen in recent years which might affect trust owned life insurance.
Trust Owned Life Insurance: Is It An Accident Waiting To Happen?
Source: EFMoody.com
Permalink posted by armandn @ 9:46 AM 
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