TOLI Issues and Solutions – 2017 Year in Review
Michael Brohawn, CFP®, CLU® and Leon Wessels
Marketing – ITM TwentyFirst
2017 was a bumpy year for Trust Owned Life Insurance (TOLI) trustees. With the higher federal estate tax exemption, married couples are not even affected by the estate tax until their estate hits almost 11 million dollars and the threatened repeal will mean that even those few may no longer feel a need for an ILIT. How does a TOLI trustee best handle Grantors who may no longer even feel a need for an ILIT? Trustees managing life insurance policies have struggled in a low interest rate environment with poorly performing policies that have not lived up to expectations. Could you be liable for them? Cost of insurance increases from more than ten carriers have raised premiums by 150%. Which policies are affected and how do you handle them? COI increase lawsuits are winding their way through the courts. What is the possible outcome and could they help you? It may be a good time to take another look at your TOLI business as we wind down 2017 and enter the new year. In this session, we will do just that, providing updates on where the industry is now, where things are going and the opportunities and pitfalls that await the TOLI trustee in 2018 and beyond.
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