Irrevocable Life Insurance Trust (ILIT) Administration

While many trust management firms do not wish to serve as trustee to ILITs until they are funded by the policy proceeds, RMB is willing to alleviate the administrative burden both during the insured's lifetime and following their death.

There are two levels of service, corresponding to the insured's life-cycle.

Administrative Trustee (during insured's lifetime):

  • Create trust account
  • Transfer policies to trust
  • Purchase new policies
  • Pay policy premiums
  • Prepare and distribute Crummey notices
  • Tax reporting
  • Monitor insurance companies and policies

For the above services a flat, annual fee is assessed determined by the complexity of duties required and whether or not RMB is acting as directed trustee.

Administrative Trustee (after insured's death):

  • Collect policy proceeds
  • Distribute proceeds or continue administration as full, delegated, or directed trustee

Following the funding of the trust with policy proceeds, the account will change to a fee structure to be determined by the elected service level and trustee role.