CONSULTRACKTM is a fiduciary resource for the development of customized solutions for problematic trust owned life insurance, incorporating industry best practices. RIC understands most professional trustees face the daunting task of balancing risk management functions and administrative overhead with limited ILIT revenue. A CONSULTRACKTM report can evaluate issues including:
- Funding challenges of TOLI
- A non competitive policy
- Use of policy dividends
- Liability Mitigation
- Inadvertent lapse of a policy
- An unwanted or unneeded policy
- Special provisions of policy riders
- Influence of policy loans on policy maturity
- Alternatives for trusts funded with term life insurance
- Policy value for sale on the secondary market
Path to Remediation
When an RIC review indicates that a policy has at least one major impairment, the trust officer will be contacted to determine if remediation is appropriate. Trustees can often resolve the situation on their own, with little involvement needed from RIC. Should the trustee require additional assistance, a higher degree of consulting can be provided.
The next phase of consulting incorporates suitability interviews with appropriate parties, which may include grantors, beneficiaries and trust officers. RIC can gather medical records as necessary. RIC distributes questionnaires that can help steer the trustee in the right direction, allowing them to then make a more informed decision on the proper resolution.
Upon request, RIC will elevate the remediation attempt to our highest level and provide an RIC Remediation Letter to document an advisory position. The three most common recommended resolutions are to restructure the policy through funding or death benefit adjustments, to replace the policy with a more efficient contract or to sell the policy on the secondary market. If the resolution is for the policy to be sold, RIC offers a Policy Appraisal to determine the market value of the asset.
