Life Insurance Trust Sustainability & Suitability Review
The Issue - How Safe Is Trust Owned Life Insurance?
Like All Assets, The Quality Of Trust Owned Life Insurance Should Be Reviewed On Two Measures:
- Integrity And Strength
- Suitability To Its Intended Purpose
As With Any Investment, There Are Risks To Trust Owned Life Insurance: The insurer could become insolvent.
The policy could outlive it usefulness.
New policy offerings could provide a better way to reach the objective.
Worst of all, the policy could have been wrong to begin with!
Are The Life Insurance Policies Held By You Safe And Appropriate?
The following is from the Office of the Comptroller of the Currency, 12 CFR 9:
§ 9.6 Review of fiduciary accounts.
(a) Pre-acceptance review. Before accepting a fiduciary account, a national bank shall review the prospective account to determine whether it can properly administer the account.
(b) Initial post-acceptance review. Upon the acceptance of a fiduciary account for which a national bank has investment discretion, the bank shall conduct a prompt review of all assets of the account to evaluate whether they are appropriate for the account.
(c) Annual review. At least once during every calendar year, a bank shall conduct a review of all assets of each fiduciary account for which the bank has investment discretion to evaluate whether they are appropriate, individually and collectively, for the account.
Wouldn't Most Attorneys Find Failure To Perform A Regular Review Of Trust Owned Life Insurance Actionable?
Learn More About Our Life Insurance Trust Sustainability & Suitability Review
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