A Life Settlement is not just about selling a trust-owned life insurance policy.
 

It's about a trustee's fiduciary responsibility

to conduct periodic reviews.

 

Insured:  75 year old male

Policy Value:  $3,000,000  (UL)

Premiums:  $118,000

Cash Surrender Value:  $116,912

Life Settlement:  $328,000 

The trustee of this policy was an attorney who had a relationship with the insurance agent who sold the policy.  The agent and the attorney worked together to review the policy's performance and discovered a problem.  Since the insured had lost interest in maintaining the policy and no longer wished to make gifts to the trust for premium payments, the cash surrender value was rapidly depleting as premiums were being deducted from the cash value.  As trustee for the policy, the attorney decided to "stop the bleeding" and conducted an estate planning review to determine whether the policy should be surrendered or whether a life settlement would be more advantageous to the client's estate.  The trustee and the insured ultimately agreed to an offer for $328,000 -- nearly three times the cash surrender value.  The proceeds were used to maximize the cash in the trust.

 

This is a situation where the client's attorney and insurance agent came together to maximize the value of the insured's estate ... and we were glad to be part of the solution.

 

Are you working with estate planning attorneys to conduct periodic reviews?

 

 

Would you like to know more about Trust Owned Life Insurance?
 

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Advanced Settlements, Inc.

www.advancedsettlements.com

 

This ad is intended for insurance and financial professionals only. Life Settlement amounts are based on numerous factors.  The above case example is for illustration purposes and does not represent future or previous offers, statements, percentages or amounts.  Actual results will vary.  The average purchase price obtained by viators is approximately sixteen percent (16 %) of the face amount of a qualified life insurance policy. Some or all of the proceeds of a life settlement may be taxable under federal or state income tax laws.  Advice from a professional tax advisor is recommended. Advanced Settlements, Inc. is a licensed broker or producer in all states where life settlements are regulated, except Kentucky, Oklahoma and Montana. The image used in this ad was obtained from stock photography for illustration purposes only and does not represent actual persons associated with this case example.

© 2005 Advanced Settlements, Inc.  All Rights Reserved.