As an attorney, drafting Irrevocable Life Insurance trusts (ILITs) is common practice. But the responsibilities that go along with being a Trustee of a trust are enormous. Today’s life insurance policies can be complex, subject to financial market performance and require specialized knowledge and skills for proper management. ITM provides a service and solution for you to use or recommend to your clients and give you:
- Assurance the trust is being monitored so that it can perform as intended
- Ability to develop strong relationships with the grantor, trustee and the beneficiaries
- Annual policy information to help advise your clients with any issues that may arise.
- Protection from liability resulting from trust and/or asset failure
A conundrum to consider:
If the trustee is the client and the trustee's duty runs to the beneficiaries, and yet the grantor remains the client as well and is paying all the legal fees, does the attorney owe a duty to the grantor, and the trustee and, derivatively, the beneficiaries? What happens when what is best for the beneficiaries differs from what is best for the grantor? ILIT drafting attorneys, and lawyers with clients possessing an ILIT, can effectively eliminate the gray matter of this conundrum, by referring their clients to Insurance Trust Monitor.