The Road Ahead - September 2010
 

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The TOLI Group Newsletter:

Checklist for Trustees
Trustees Have Legal Obligations
And We Can Help
 
The Uniform Prudent Investor Act (UPIA) requires trustees to monitor performance of trust assets, investigate the appropriateness of trust holdings relative to peer group alternatives, and manage trust assets in a manner that demonstrably minimizes costs and maximizes benefits.  Trustees have a fiduciary duty to manage the assets in a trust for the benefit of the beneficiaries.  That is why each state has laws that establish standards trustees must follow when managing a trust's assets.  A trustee who doesn't meet these standards can be held personally responsible for trust losses. 
 
 To reduce the risk of personal liability and maximize the benefits for the beneficiaries, trustees need to: 
  • Understand the objectives and terms of the trust. 
  • Develop a reasonable investment strategy (which is done be completing our Life Insurance Design Questionnaire)
  • Adopt a written Policy Management Statement (which we draft)
  • Implement the strategy with appropriate life insurance product. 
  • Regularly review policies and investments.
  • Make changes as needed.
Case Study: Are you the Trustee for a Similar Policy? 
  
Sam is a 60 year old whose estate has grown over the years.  His ILIT purchased a $3.85 million policy 15 years ago.  Because interest rates where higher then, the design assumptions showed the policy would be paid up at his age 70. 
 
A review of the policy revealed that because interest rates had not continued at the higher rate, premiums must continue for the remainder of Sam's life. 
 
Policies don't have to be 15 years old to have similar issues.  Let us perform a review of your policies today. 
 
This hypothetical example is for illustrative purposes only.  It does not reference any specific client experience. 

Coming Soon:  TOLI Vault 2.0!   

At The TOLI Group, we are continually working on our technology.  Our Vault has been impressing trustees and clients since it's inception, but we have been busy behind the scenes and are almost ready to role out an upgraded version.  Next issue we will have a preview of our 
 TOLI Vault 2.0.  Stay tuned! 
At the TOLI Group we strive to be the best source of life insurance knowledge and design to our clients and partners.  Our goal is to provide excellent customer service, comprehensive planning and annual policy monitoring to keep our reputation as one of the premier life insurance consulting firms in the region. 
 
If there is ever anything that we can do for you, please don't hesitate to let us know.

The TOLI Group - Protecting Tomorrow's Tomorrow.

Sincerely,
 
The TOLI Group
Securities offered through ValMark Securities, Inc. Member FINRA, SIPC.130 Springside Drive, Suite 300, Akron, OH 44333  800.765.5201
Investment Advisory Services offered through ValMark Advisers, Inc., a SEC-registered investment advisor.
The TOLI Group is a separate entity from ValMark Securities, Inc. and ValMark Advisers, Inc.