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Proformex Supports ILIT Management

Jan 21, 2019 10:36:25 AM

Whether you're a professional or non-professional trustee, you are held to strict fiduciary standards. Proformex can help you avoid unintended breach of those fiduciary duties. Did you know Proformex can help to establish processes to ensure that you're exceeding the standards to which you are held as a trustee? To demonstrate how Proformex supports ILIT management, we created the following video. Check it out to learn more about how we can help!

 

18.0012 - ILIT_60sec

 

[VIDEO TRANSCRIPT]

An Irrevocable Life Insurance Trust or ILIT, is created primarily to own life insurance. The trustee can be a family member or an independent trustee. This trustee has a fiduciary responsibility to manage trust assets for the beneficiaries.

Trustees must adhere to the statutes for the states in which the trust is domiciled and must establish a process for determining suitability of trust-owned life insurance on an ongoing basis.  Policies should be monitored to ensure against risk of lapse and to identify options to keep the policy on track.  

Not having an established process could lead to unintended breach of fiduciary duties and possible legal liability against the trustee.  

ILIT Trustees’ responsibilities include:

Notification to grantor when premium gift is required.

Providing notice of gifts to beneficiaries through Crummey letters.

Payment of life insurance premiums

Annual policy performance review.

Investment management.  

Tax reporting.

Proformex supports ILIT trustees by establishing a process for sending premium gift reminders, producing Crummey letters, verifying premium payments, and continually monitoring policy performance.

To learn more about how Proformex can help with ILIT management, visit our website.

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