The definition of trust owned life insurance is life insurance that resides inside a trust. Trust owned life insurance is used by wealthier individuals as the major part of their estate plan. It enables the trust to provide for survivors, cover estate tax liability planning, balance inheritances among heirs and meet charitable objectives.
When someone needs a trust owned life insurance analysis, they will want to make sure that everything is in order with their life insurance plan. Having all of these things set up is important for people who have made a lot of monetary accomplishments over the course of their life.
It is important for people who have a trust owned life insurance policy to review them regularly. The existing policy might not meet the current needs of the trust, and newer insurance products might be more cost efficient and offer better options and features. Life insurance is viewed as a long term asset that will not be used for its true purpose for decades, in the best case scenario. Consequently it is often overlooked when monitoring and managing the overall trust.
When estate owners read over an ADV brochure they will be able to get more information relating to their trust owned life insurance plan.