Life Insurance Trustees Must Fulfill Duties

Summary


NEW HAVEN -- Pension expert Carl S. Feen has a message for area lawyers, accountants, bankers and anyone else who might serve as a trustee overseeing financial assets: Handle life insurance trusts with care. More lawsuits are being filed by beneficiaries against trustees because interest rates have fallen precipitously over the past decade, eroding the value of nonguaranteed trust-owned life insurance policies, for instance.

Policies that sold at 12 percent to 14 percent interest rates are now earning 4 to 5 percent in some cases, he said. Beneficiaries who believe such policies are worth a certain amount of money are suing trustees when they find out the value has fallen.

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Life Insurance Trustees Must Fulfill Duties

"Many trustees are unaware of these c...

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