Trusts

Whether you have life insurance in a life insurance trust, a family trust, a charitable remainder trust, or any other type of trust vehicle, a life settlement could help accomplish the goals of the trust and fund beneficiary needs. Some reasons a trust may want to consider a Life Settlement include:

The goals of the grantor to the trust, or the beneficiaries of the trust, have changed and the insurance policy is no longer necessary
The policy was purchased several years ago and is not performing as expected, and the trustee needs to replace the insurance
The premium payments are no longer affordable, or the trustee is no longer interested in paying premiums to keep the policy in force
The trust owns a policy which may lapse sooner than expected, and needs to be sold and replaced with new insurance
The estate size has decreased or tax laws have changed, reducing the amount of insurance required to pay projected estate taxes
The estate size has grown and the initial policy no longer meets the requirements of the original estate planning needs
The grantor has outlived the beneficiaries to the trust
Other trust assets need to be maintained, and the sale of a policy may help the estate retain more valuable assets

Cash received in from a settlement may be used to:

Disburse the cash to accomplish other goals of the trust
Invest the cash to fund other goals of the trust
Purchase a new paid-up life insurance policy
Pay for long-term care or assisted living for the trust grantor or beneficiary
Fulfill charitable giving wishes