Trust Owned Life Insurance
For more information review chapter 14 of the TOLI Handbook, available as a free download at TOLIHandbook.com.
It is estimated that over 100 billion dollars in life insurance benefits are surrendered each year by older aged citizens in the US.
(1) Unfortunately, the typical senior probably does not understand the life settlement market and the opportunity to maximize the value of an asset that many let lapse valueless after a lifetime of premium payments.
Today’s TOLI trustee needs to be aware. With the changes in the estate tax laws and the aging of the TOLI population, the opportunity to obtain maximum value for a TOLI policy may hinge on a TOLI trustee’s understanding of the life settlement market and the reasons and methods for selling a policy.
Policies are sold for several reasons. The changes in the estate tax laws that have altered the need for a policy to pay estate taxes. Changes in family or financial circumstances may also have lowered the death benefit need. Cost of insurance increases that have occurred, especially in current assumption life policies, have made some policies cost prohibitive for some grantors.
The TOLI trustee is charged with maximizing the value of a policy.
Daxton Fryer
866-326-5433