ITA Quarterly Newsletter - May 2019 Iowa Mortgage Association


May 2019

ITA President's Message

Our Annual Iowa Trust Association Annual Conference (ITA) will be held October 2-4 in the West Des Moines Marriott Hotel.  We look forward to providing ITA Members with excellent speakers on current industry topics.  Exhibitors will be available with product solutions and services.  Continuing education (CE) hours will be available for participants.  We look forward to seeing you in October!    

The semi-annual peer group meetings will be held again in advance of the fall conference.  Participants in the peer group meetings have communicated to the board that peer meetings are a useful way of learning from others in the industry and developing working relationships with your fellow trust professionals.  Industry questions and challenges are submitted prior to the meeting and then the meeting is an opportunity for peers to share potential solutions to the industry challenges

I wish you the best in 2019!

Brad VanHeuvelen
Sr. WMG Officer, Peoples Bank and President of the Iowa Trust Association

Schools of Banking Trust Schools
Mark your calendar for the Schools of Banking Trust Schools. Sponsored by the ITA, the programs are a tremendous training opportunity for your trust staff.
School of Trust & Financial Services
August 19-23, 2019 • Omaha
This school provides a broad trust instruction program appropriate for new trust department personnel and includes information on administration, investments, fiduciary income taxes, retirement planning, compliance, trust accounting, estate planning and more.
Advanced Trust School
August 20-22, 2019 • Omaha
This school is for trust professionals with more experience in the trust industry and graduates of the School of Trust and Financial Services. It covers crisis management, relationship management, unique assets, estate planning techniques, opening and closing accounts, and much more.
For more information about the Schools of Banking Trust Schools see the website for
registration information.

Now is the time for TOLI trustees to talk to their clients

John Barkhurst, ITM TwentyFirst
An online survey about life insurance found 33% of life insurance policy owners do not understand how their policy works1.  The other 67% probably think they know how it does, but I imagine they would appreciate a refresher lesson on how it actually works. Even if they do understand how it works, do they understand how a decade of low interest rates and equity market volatility affected their policy?

TOLI trustees should be reaching out to grantors to explain to them how their policy works. Doing so provides the grantor with greater clarity about their policy and gives you a chance to deepen the client relationship, bringing benefits to both of you.

For the grantor who has dutifully paid premiums (and trust fees) for years, the discussion will reinforce the reasons for taking the policy out. Even though changes in the federal estate tax may have greatly reduced the number of people subjected to the tax, life insurance is still a worthwhile financial investment, and that point can be driven home by the discussion.
Years of low interest rates have been a drag on performance, and now is the time to review those policies with your clients – when interest rates are ticking up and fixed investments (which most life insurance policies are) have a rosier future. Perhaps the premiums will have to be increased to keep the policy on track, but the policy, if managed correctly, is still a valuable asset.
Many grantors are reassessing their financial and estate planning futures, and once comfortable that their life insurance is secure and valuable, you can move on to other subjects that may provide additional revenue for your firm.

For many, retirement income is a major concern. Your financial planning services can lead to additional opportunities for your firm. For example, clients who are worried they may “run out of money” can be introduced to annuities as a funding vehicle for a portion of their assets to ensure a basic lifetime income.
Higher net worth clients, with well-funded retirements, still need your services. Introduce investment options as you develop a relationship with them. These clients also have issues other than money you can solve — most struggle with how much to pass on to their children and how to structure the inheritance. You can bring great relief to ILIT clients by introducing other trust and estate planning services that can solve their problems.

Use these discussions to open a dialogue with the beneficiaries of the ILIT. Most TOLI trustees rank retaining the asset – the death benefit – as one reason for handling ILITs, yet few put in the time and effort to cultivate the next generation of wealth. Why can’t the beneficiaries be clients now so retaining the TOLI benefit in the future will be cemented?
Explaining the policy can be the first step to greater opportunities. Open the lines of communication with your grantors; you will be glad you did.

1.    “54% of Americans Own a Life Insurance Policy, but One-Third Are Not Exactly Sure How It Works,” Mike Brown, September 19, 2018 lenedu.com

Legislative Tool Helps you Connect with Legislators

  The Iowa Bankers Association's Legislative Action Center allows bankers to easily contact legislators electronically. Letters on key pending legislation and regulations are posted on the site and can be easily edited and/or personalized for bankers to send to their respective elected officials and regulators at 
the state and federal level.
 The Legislative Action Center is available online at www.iowabankers.com.

    Contribute to the Iowa Trust Association
    As a reminder, the Iowa Trust Association (ITA) welcomes contributors to their quarterly newsletter. If you would like to comment on recent activities in the industry or let us know about an upcoming event that would be of interest to our readers, please feel free to contact Darcy Burnett, at (800) 800-2353 or dburnett@iowabankers.com. Thank you for your interest in our publication and we look forward to hearing from you

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