Did You Reicve A Letter?
Providing Exclusive Fiduciary Services For Life Insurance Trusts
Life Insurance Trust Company is based out of Sioux Falls, SD to take advantage of the progressive trust laws the state provides. Life Insurance Trust Company is the first trust company in the country focused exclusively on life insurance trusts, and provides ﬁduciary services to grantors and beneﬁciaries of Irrevocable Life Insurance Trusts that goes beyond typical corporate trustee services. We are a member of the ITM TwentyFirst family of companies, which have been providing independent life insurance services for trust owned life insurance since 2002.
Providing professional fiduciary services for Irrevocable Life Insurance Trusts is our sole focus. We have a team of experienced professionals well versed in fiduciary trust and life insurance services giving us a competitive advantage in managing these unique assets. We build strong relationships with our clients to understand and meet their insurance needs.
Whether you received a letter from your current trustee notifying you of a change of trusteeship to Life Insurance Trust Company or you are looking at Trustee options, please review our FAQ below for more information.
Frequently Asked Questions:
Q: Why would a trustee scale back or eliminate insurance trusts from their purview?
A: With the ever-increasing complexity of life insurance, many traditional trustees are limiting the number of specialty assets they keep in their custody.
Q: Are there any penalties or cost associated with transferring my trust?
A: No. Any expenses associated with transferring your trust is being covered by Life Insurance Trust Company or your previous trustee.
Q: The letter I received stated there was an agreement, petition, and court approval, how does this work?
A: If you received a letter from your current trustee of a change of trusteeship to Life Insurance Trust Company, your trustee has entered into an agreement for Life Insurance Trust Company to become successor trustee of your trust. Once the agreement is signed, Life Insurance Trust Company will file a petition to a South Dakota Judge and a hearing date will be scheduled where the judge will rule on the petition. Once the judge signs the order, Life Insurance Trust Company will become trustee of your trust.
Q: I received a letter with a notice of hearing, do I need to do anything?
A: No. Nothing is required of you, the notice is a legal requirement which is sent to all parties of your trust.
Q: How long after the hearing date will my trust be transferred?
A: Trusteeship will be transferred upon a signed court order by the judge. This is typically signed on the date of the hearing or within a few days following the hearing.
Q: I rely on my advisor(s) to help me with my life insurance trust, will I still be able to do this?
A: Absolutely. Life Insurance Trust Company will work with an advisor of your choice and will provide them with policy review information if desired. We strive to be a great strategic partner with outside advisors.
Q: How will I know when I need to provide money to pay premiums?
A: Life Insurance Trust Company will send notification of any premiums due for policy(s) held in your trust.
Q: Will the beneficiaries of the trust be made aware of the transfer?
A: Yes, all interested parties (grantors and beneficiaries) will be made aware of the transfer.
Q: My previous trustee provided an annual trust statement, will you do the same?
A: Yes, Life Insurance Trust Company will provide you with an annual policy review and annual statement showing all activity on your trust account.
Q: Can I call you to discuss my trust or if I have questions related to the insurance policy(s)?
A: Absolutely. Every account at Life Insurance Trust Company will be assigned a trust officer and an insurance specialist to answer any questions you may have.
Q: Will anything change if we decide to move our ILIT to Life Insurance Trust Company?
A: No. Life Insurance Trust Company will manage your ILIT as it has been managed in the past, in accordance with the terms of the trust agreement. However, Life Insurance Trust Company provides a focused review of each policy and provides remediation services for those policies that are anticipated to fall short of expected goals.
Q: Can Life Insurance Trust Company be my trustee if I don’t live in South Dakota?
A: Yes, Life Insurance Trust Company can act as your trustee even if you don’t live in South Dakota. Removing your current trustee and appointing Life Insurance Trust Company as successor trustee will allow the trust to be administered in South Dakota regardless of where you live or where the trust is currently administered.
Q: Is it possible to move my account if I change my mind?
A: Trust agreements and applicable state law dictate how to remove and appoint successor trustees. A review of the trust document will be needed to determine how to name a successor. Generally, this can be done at any time, however, each trust is different.
Still Have Questions?
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