We Help ILIT Fiduciaries Deal with Problematic Policies and Find Solutions to Challenging Performance Issues
Irrevocable life insurance trust (ILIT) fiduciaries often struggle to balance their obligations to these policies with the limited revenue potential of their ILIT-related services. Trustees and other fiduciaries must meet their obligations while also effectively managing the risks and administrative costs involved, and this is not an easy task. The burdens of serving as an ILIT fiduciary can easily outweigh the financial returns—and this is the case even with relatively straightforward and low-risk trusts and insurance policies.
When a trust or insurance policy proves problematic, the risks and administrative costs of serving as a fiduciary can become even more substantial. Yet, fiduciaries’ ILIT revenue may remain the same. Over time, this can prove unsustainable, and fiduciaries can face losses despite managing substantial ILIT portfolios.
Reduce the Burdens of Problematic ILITs with Strategic and Cost-Effective Remediation
Insurance Trust Services (ITS), LLC helps trustees reduce the burdens of problematic ILITs, including dealing with both trust and policy-related issues. We provide custom-tailored solutions for dealing with problematic policies. We offer remediation reports that address all performance-related issues associated with high-cost and low-reward irrevocable life insurance trusts.
Our ILIT remediation services include:
- In-force policy review and policy restructuring analysis
- Life expectancy reports
- Life insurance policy valuations
- Preliminary life insurance settlement evaluations
- Suitability assessments (including multiple policy analysis)
- Development and execution of custom-tailored remediation strategies
Our process begins with reviewing in-force policies to assess the levels of risk they present. If necessary, we can also prepare and send notices of beneficiaries’ rights to withdraw property from the trust (Crummey letters) at this time. If, based on our review, we determine that an in-force policy is problematic, we will provide recommendations regarding any necessary changes to mitigate your fiduciary risk while still effectively accomplishing the objectives of the ILIT.
Depending on the specific issue (or issues) at hand, at this stage, our remediation recommendations may include revising the funding amount or face amount or pursuing open-market suitability alternatives. We will provide a report that details all of the various options you have available, and we will provide clear guidance based upon our expertise in the ILIT market. If it is determined that a policy or trust modification is necessary, we can assist with preparing all necessary documentation to achieve the desired remediation.
Dealing with a problematic insurance policy or ILIT can be challenging, but ignoring the issue is not the solution. These issues do not resolve themselves independently; if anything, they lead to even bigger problems over time. ITS can help you make the right decisions, and we can help you move forward with confidence. Contact us to learn more.
Contact Insurance Trust Services, LLC
We bring simplicity to ILIT administration. If you would like more information about our remediation services, we encourage you to get in touch. To speak with an experienced member of our team in confidence, please call 561-241-9595 or contact us online today.