AALU Library

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Court Rules Executive Has No Legal Right to Life Policy Funding SERP


The U.S. District Court in Collins entered summary judgment in favor of the employer against an executive who claimed breach of fiduciary duty and wrongful denial of benefits. The suit was brought when the employer terminated a nonqualified top hat deferred compensation plan and paid participants only the net present value of their account balance.

PLR Says Sale of Life Policies by Joint Trust to Husband’s Irrevocable Grantor Trust Avoids Transfer for Value Problems

Topics: Estate planning, Grantor trusts, Irrevocable trusts, IRS, Trusts

In PLR 201423009 the IRS ruled that a transfer of a survivorship life insurance policy from a husband and wife grantor trust to a grantor trust of which the husband is treated as the owner for income tax purposes would not trigger the loss of the income tax exclusion at the insured’s death under the…

STOLI Agents Indicted for Fraud

Topics: STOLI

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) has announced the indictment of two men for a scheme to defraud insurance companies, including Lincoln National, into issuing stranger-originated life insurance (STOLI) policies.

Life Insurance Beneficiary Designation Survives Parties’ Divorce

Topics: Estate planning

Jeffrey Clark purchased insurance on his life from West Coast Life and named his wife as beneficiary. When the parties divorced, Jeffrey completed paperwork to change the beneficiary to his sister. But the change of beneficiary paperwork was not submitted to West Coast until after Jeffrey’s death. The U.S. District Court decided that the original…