Irrevocable Insurance Trust (ILITs)

• SDTC recognizes that most advisors and corporate trustees do not want to act as trustee of an Irrevocable Life Insurance Trust (ILIT) until the proceeds are actually paid, leaving the family to cope with the burdens of the unfunded insurance trust's administration. SDTC will act as trustee during the insured's lifetime and after the insured's death.

• SDTC provides ILIT administration services for fixed, variable, as well as private placement policies.

• There are two levels of trust administration associated with ILITs. One deals with the insured's lifetime and the other begins with the insured's death.

· Administration Duties During Insured's Lifetime: - Creation of trust account; - Transfer of policies into the trust; - Purchase of new policies; - Tax reporting; - Preparation and transmittal of beneficiary Crummey notices; - Extensive monitoring of insurance companies and policies.

· In response to evolving case law and litigation regarding trustee responsibilities, SDTC reviews an insurance company's financial stability as follows: - Use of rating services like Moody's, Standard & Poor, Duff & Phelps, and Weiss; - Independent analysis of each company's dividend history, expense ratio & portfolio (i.e. asset allocation, asset & bond quality, non-performing assets); - Periodic review of policy appropriateness for trust objectives.

· Administration after insured's death: - Collection of proceeds; - Distribution and/or continued administration of trust assets; - "full all-inclusive", "directed" and "delegated" trust administration services available through SDTC.

If you have any questions or would like any additional information regarding SDTC's Trust Services, please contact us .