Hybrid BOLI: Beware of Treatment Under Basel III

NOTE: Pangburn publishes article confirming EBN’s views on Hybrid BOLI and Basel III. Read it HERE. R. David Fritz, Jr., CLU – Managing Partner and Co-Founder, Executive Benefits Network Most banks find their guidance regarding BOLI purchases from the OCC Bulletin 2004-56 and other Interagency Statements. The OCC Bulletin 2004-56 includes rules related to the… Read more »

Trust-Owned Life Insurance (TOLI)- To Have and to Manage

Trust-Owned Life Insurance (TOLI)- To Have and to Manage Patrick J. Marget, JD, CPA, CFP, CLU- Managing Director Facts: 25% of non-guaranteed TOLI will lapse during the insured’s lifetime, even with current scheduled premiums being paid. More than 70% of TOLI policies have no servicing agent. 83.5% of trustees have no policies or protocols in… Read more »

Avoiding Inadvertent Taxable Gifts: Crummey Powers and ILIT Trustee Responsibilities

Avoiding Inadvertent Taxable Gifts: Crummey Powers and ILIT Trustee Responsibilities Lindsey M. Bessy, ALMI, CLTC, MBA, CLU, CASL- Financial Representative Many individuals follow an annual gifting strategy that involves making gifts to trusts, including Irrevocable Life Insurance Trusts (ILITs), and rely on beneficiary withdrawal powers to avoid taxable gifts by qualifying the transfers as annual… Read more »

IRS Announces New Program to Audit 409A Compliance

R. David Fritz, Jr., CLU IRS Announces New Program to Audit 409A Compliance Last month, the Internal Revenue Service announced that a Compliance Initiative Project (CIP) was underway involving a compliance audit for Section 409A plans. The CIP will initially focus on fifty large companies; however, this foreshadows a much broader Section 409A initiative enforcement…. Read more »