Articles & Advisories

Consequential Liabilities and Remedies to Mismanaged Individual and Trust Owned Life Insurance

Joseph T. La Ferlita is quoted in this article from the September 13, 2018 edition of the Estates, Gifts & Trusts Journal. This piece discusses the rising number of non-guaranteed life insurance polices that are expiring prematurely. Joe was asked to provide his input for a hypothetical situation in which a client has his son acting as a trustee for the family trust. The son has been informed that the client’s life insurance policy will expire unless the premium is significantly increased; they have already paid a substantial amount in past premiums and have unspecified loans.

Below is a quote from Joe’s response:

“Just as the prudent trustee periodically reviews the ‘health’ of (e.g.,) the trust’s stock and bond portfolio, he should also periodically review the ‘health’ of the trust’s life insurance policy to make sure it will perform as needed. Sadly, many think that box is checked merely by timely paying the insurance premiums. But that’s not always enough.”

To read the full article, please click here.