Patrick Collins, Ph.D, CLU, CFA has released a working paper on the topic of The Decision to Replace Trust Owned Life Insurance Policies. Reprinted from the November / December 2005 issue of The Banking Law Journal

There may be many valid reasons to consider life insurance policy replacement. However, the focus in this article is on replacing an existing life insurance contract with a new contract that provides superior financial results. The trustee takes replacement action based on the expectation that the new policy offers a financial instrument better suited to the terms, purposes, distribution requirements, and other circumstances of the trust — a prudent decision-making process. It also addresses the quantitative nature of the analysis (and difficulties therein) and provides an approach which allows the trustee to demonstrate the requisite levels of care, skill, and caution.

Download The Decision to Replace Trust Owned Life Insurance Policies