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Henry Montag co-authors book for the American Bar Association release October 2016 

"The Advisors and Trustees Guide to Managing Risks and Avoiding a Client Crisis"



Henry Montag on Wall Street Week
Discussing Serious Trust Owned Life Insurance Issues  

Henry Montag on Wall Street Week




Henry Montag CFP Replay of Trusts and Estates Webinar June 2017. Discusses ABA Book

"The Advisors' and Trustees' Guide to Managing Risk and Avoiding a Client Crisis"

YouTube Video





News 12 - Montag comments on Trumps address to Congress 
March 2017

YouTube Video



Montag Discusses Consumer Debt News 12 Feb 2017

YouTube Video




Video News 12  Montag Discusses Historic Dow 20,000

YouTube Video: News 12 Montag Discusses Historic Dow 20,000




Henry Montag CFP Discusses Impact of Interest Rate Hike.  News 12.  

Dec 16, 2015

Henry Montag CFP Discusses Impact of Interest Rate Hike. News 12. Dec 16, 2015



YouTube Video







Henry Montag discusses problem of prematurely expiring life Ins on Vincent Russo & Associates Webinar 

July 15, 2015

Henry Montag discusses problem of prematurely expiring life Ins on Vincent Russo & Associates Webinar July 15, 2015

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LIFE INSURANCE TRUST ASSETS

THE ADVISERS GUIDE FOR PROTECTING NON GUARANTEED PRIVATELY OWNED AND TRUST OWNED LIFE INSURANCE - TOLI

 

 

THE PROBLEM

    Many Individuals spend a lifetime building a portfolio of stocks, bonds, and investment assets. They maintain frequent contact with their broker or wealth managers responsible for their portfolio’s performance which is based on their active management skills.

However, many of these same clients overlook the risk management of their life Insurance portfolio, which ironically may have a significantly larger death benefit value than their investment portfolio and plays an integral part in their wealth transfer planning. But they don’t realize that their non guaranteed life insurance is a ‘Buy and Manage’ asset that should be managed with the same time-tested discipline as their traditional investment portfolio.

As a result of this neglect, & reduced interest rates, there is a failing Life Insurance Policy Crisis today. Further It is likely your clients are unaware they have assumed 100% of the policy performance risk of their portfolio. .

Credible in force policy performance monitoring and risk management is needed.  Originally illustrated policy premiums was based on higher interest rates that have not been achieved. Interest rates have declined from as high as 15% to a current 3%.            

Neither the amateur (ILIT) trustees, nor the grantors themselves  are still not aware that the billed premiums on their life Insurance  policies should have been increased to make up for the reduced interest rates. Now after many years of reduced rates& neglect, 24% of flexible premium non-guaranteed policies are expiring prior to the Insured’s life expectancy.

 

CONSEQUENTIAL LIABILITIES

An ILIT trustee is responsible to:

 Administer their Crummey letters  

 File Tax returns &Allocate GST taxes

 Monitor financial health of Ins Carrier     

 Monitor performance of their policies

If prudent ILIT administration and TOLI risk management procedures are not followed, the premium gifting plan is disrupted, and the expected death benefit liquidity are at risk to expire worthlessly. Should this situation occur, a grantor/client and his/her family will likely blame professionals for not providing needed advice and guidance, thus posing reputation and client retention risks as well as unpleasant family disputes.

 

PRUDENT SOLUTIONS

Awareness of the Failing Life Policy Crisis, the need for prudent risk management procedures and the availability of independent TOLI-specific expertise is the critical first step.  A problem cannot be fixed if the parties are not aware of the problem nor know whom they can trust to help.

As your clients’ trusted advisor, you can assist them in engaging a fee-for-service industry leader.  The TOLI Center will assist your clients in formalizing a policy review and risk management process that annually monitors carrier, product and policy suitability as set out in the trust’s Investment Policy Statement.  If corrective action is needed, the available policy remediation and restructure options, including life settlement, can be reviewed so that the expected standard of care is provided, and your firm & clients family avoids any unnecessary disputes.

Only a post- sale ‘manage’ function can safeguard your clients’ wealth management planning and your firm’s resource value reputation.  To see how an independent and unbiased policy management service can benefit your client’s and your client relationship, please contact our office

Henry Montag, CFP, CLTC.

Henry Montag, in practice since 1976, is a Principal of the TOLI Center East, & provides CPE & CLE credits to The NYS Bar Association & N.Y State Society of CPAs.  He co-authored “The Advisors Guide to Managing Risk” for the American Bar Association, (Fall 2016).  His articles on TOLI have appeared in publications such as The NYS Bar Association’s Law Journal, The Suffolk County Women’s Bar, &The NYSSCPA. He’s been a source for W.S.J., Investor’s Business Daily, Newsday, LIBN and has appeared as a guest on Fox News, Wall Street Week TV, News 12.

 

E .Randolph Whitelaw AEP®

(Distinguished)

E. Randolph Whitelaw is Managing Director of Trust asset Consultants, LLC, a TOLI risk management consulting firm, and Co-Managing Director of The TOLI Center, LLC.  A leader in the TOLI risk management consulting and restructure marketplace.  As co-author of “The Advisors Guide to Managing Risk” he lectures nationwide, & has also authored numerous professional articles, regularly authors peer-reviewed articles, and frequently provides expert opinion and testimony in dispute and litigation matters. Most recently he lectured at the Heckerling Institute Jan 2014 on TOLI related matters.

THE TOLI CENTER

The TOLI Center (TTC) provides an Irrevocable Life Insurance Trust (ILIT) and TOLI risk management platform designed to preserve life Insurance assets & meet the asset management requirements of institutional and personal trustees, family offices & professional advisor’s to trustees while protecting against reputational risk and unnecessary lawsuits.  The tools to protect your client’s life Insurance and your firm’s reputation are available today - they just need to be selected and used.

For more information contact:

Henry Montag, CFP, CLTC
The TOLI Center East
(516) 695-4662

henry@thetolicentereast.com 
www.thetolicentereast.com