TRUST ASSET CONSULTANTS | 1121 Olivette Executive Parkway, Ste 200 | St. Louis, MO| 63132
Trust Asset Consultants
Trustees The Prudent Investor Rule measures trustee prudence in terms of the ‘process’ by which investment decisions are made. It instructs a trustee to design and actively carry out a reasoned investment strategy that will fit within the trust’s unique purposes.  TOLI is a concentrated investment and, hence, requires TOLI-specific procedures and credible policy evaluation. Life insurance, a risk transfer mechanism, is ideally suited for trust ownership and management.  A trustee can accept a guaranteed death benefit policy and transfer all policy performance risk to the underwriting carrier, or the trustee can retain premium adequacy and lapse risks by accepting a non-guaranteed death benefit policy and actively managing policy values. Trustee acceptance of premium adequacy and performance risk implies grantor approval to do so and the requisite life insurance and policy evaluation expertise to actively manage TOLI as set out in the trust’s TOLI Investment Policy Statement (TIPS). Active management requires a TIPS, risk-based procedures and actuarially-certified premium adequacy evaluation.  Actuarially certified evaluation should be the basis for documenting policy acceptance, annual performance monitoring and risk management, and policy restructure determinations. TAC understands the liquidity and wealth preservation planning expectations of grantors, beneficiaries, and professional advisors.  As a result, we assist skilled and unskilled trustees in transitioning to credible risk-based management and implementing best practice solutions for under-performing, unsuitable, and un- needed TOLI policies.  Further, TAC and The TOLI Center offer counseling, administration and annual management services designed specifically for unskilled ‘accommodation’ trustees and their professional advisor support team.