Fiduciary

Picking Your Trustees- Be Careful Out There – Beneficiaries as Trustees.

Topics: Fiduciary, Regulation

It is commonplace to have family trusts structured as dynastic trusts for descendants (children, grandchildren, etc.) because they qualify for transfer tax deferral and creditor protection according to longstanding and appropriate tax principles. Deciding to have a child or other descendant serve as a trustee of such a trust teaches the beneficiary about wealth stewardship,…

Malpractice Suit Against Trustee Who Failed to Inform Beneficiaries of Potential Policy Lapse

Topics: Fiduciary, Regulation

The successor trustees and beneficiaries of the Vitello family trust sued Kathleen King O’Brien, a Michigan lawyer, for malpractice in her handling of a policy owned by the trust when she was the trustee. O’Brien sought coverage from her malpractice insurer, Hartford Casualty. But it denied her claim because she had failed to timely notify…

Who Can You Trust with Your Policy Finding the Right Fiduciaries for Insurance Trusts.

Topics: Estate planning, Fiduciary, Irrevocable trusts, Trusts

ILITs are a mainstay in legacy and life insurance planning, and having a responsible, experienced trustee is critical for the ILIT to achieve the client’s objectives. Finding suitable ILIT trustees, however, has become increasingly difficult, particularly given the complexities and potential liabilities associated with ILIT administration (both before and after receipt of policy death benefits),…

ERISA Fundamentals – A Primer on Fiduciary Duties.

Topics: ERISA, Fiduciary, Qualified Plans

To protect employees with regard to certain employer-sponsored benefits, ERISA imposes fiduciary responsibilities on employers and others plan manager and administrators, which can be enforced by lawsuits and civil penalties from the Department of Labor. Anyone that has discretionary authority with respect to the administration of a plan or the disposition of its assets is…

Fiduciary Duty with Regard to Policy Lapse

Topics: Fiduciary, Regulation

The insured’s estranged widow learned five days after his death that her husband’s life insurance policy had lapsed. Upon the advice of the life insurance agent (who was presumably the selling agent), she paid the unpaid premium in an effort to have the policy reinstated.

Hot Off the Press- Proposed Regulations on Basis Consistency and Information Reporting for Estate Fiduciaries – New Rules, New Headaches.

Topics: Fiduciary, IRS, Regulation, Treasury Department

The WRMarketplace is created exclusively for AALU members by the AALU staff and Greenberg Traurig, one of the nation’s leading tax and wealth management law firms. The WRMarketplace provides deep insight into trends and events impacting the use of life insurance products, including key take-aways, for AALU members, clients and advisors. The AALU WRNewswire and…

The Winds of Change Are Blowing – What’s on the Horizon

Topics: DOL, Fiduciary, IRS, Regulation

The WRMarketplace is created exclusively for AALU members by the AALU staff and Greenberg Traurig, one of the nation’s leading tax and wealth management law firms. The WRMarketplace provides deep insight into trends and events impacting the use of life insurance products, including key take-aways, for AALU members, clients and advisors. The AALU WRNewswire and…

DOL Issues Proposed Regulation Revising the Definition of Fiduciary and the Prohibited Transaction Exemptions for Adviser Compensation.

Topics: DOL, Fiduciary, Regulation

Thursday, June 4, 2015WRM#15-20 The WRMarketplace is created exclusively for AALU Members by the AALU staff and Greenberg Traurig, one of the nation’s leading tax and wealth management law firms. The WRMarketplace provides deep insight into trends and events impacting the use of life insurance products, including key take-aways, for AALU members, clients and advisors.…