The UPIA and TOLI: The Impossible Dream or A Match Made in Heaven
Please join us for the July Dinner Event. This is a new time (same old place) to allow more CE and networking and take the pressure off of getting back to work. If you would like to see more evening events for the Council, please vote with your attendance.
Networking and no host bar opens at 4:30 and our program will begin at 5.
We will start the evening off with a brief presentation on the current status of the proposed Margins Tax by Robert Armstrong of McDonald Carano.
Our feature presentation will be on the Uniform Prudent Investor Act (UPIA) and Trust-Owned Life Insurance (TOLI): The Impossible Dream or A Match Made in Heaven. Our Speaker will be Gary Flotron, MBA, CLU, ChFC, AEP.
2 hours of CE will be Available.
For over a decade and a half there have been a plethora of articles about the applicability of the Uniform Prudent Investor Act (UPIA) to Irrevocable Life Insurance Trusts (ILITs) and Trust-Owned Life Insurance (TOLI). While all of these articles point out the duty of the trustee/fiduciary to manage and monitor the life insurance policies, and to investigate, compare and evaluate the suitability of the current life insurance policy and the proposed acquisition and/or replacement of life insurance, – and, albeit, a very small handful remind the trustee of the duty to diversify the life insurance holdings – almost none of these articles tell the trustee how to accomplish these fiduciary duties which seem impossible to apply to life insurance. Indeed, a considerable amount of academic literature comes to the conclusion that it is impossible to compare life insurance policies and proposals. Additionally, some professional as well as non-professional trustees and fiduciaries have overwhelmingly ignored applying UPIA standards to TOLI. However, the Stuart Cochran Irrevocable Trust v. KeyBank, N.A. case [In re Stuart Cochran Irrevocable Trust, 901 N.E.2d 1128 (Indiana Court of Appeals, March 2, 2009)] should cause trustees/fiduciaries to become aware of their duties with respect to the risk management, monitoring and evaluation of permanent life insurance.
This program and presentation will examine the trustee’s dilemma with respect to the risk management of life insurance and attempt to describe and identify the techniques and resources available to the trustee to evaluate, in particular, permanent life insurance policies. The program will first review UPIA and the applicability of UPIA to TOLI, including the Cochran v. KeyBank case. Next the program will examine the nature and explain the pricing elements of life insurance and the risks of the most common types of permanent life insurance policies.
The prudent process of applying UPIA to the management of ILITs for both the professional and amateur trustees will be explained. Similar to the commonly used in trust operations Investment Policy Statement the program will examine the concept of creating a TOLI Investment Policy Statement (TIPS) as the cornerstone of the prudent management process for ILITs.
Acceptable “dispute defensible” life insurance policy evaluation techniques will be discussed. While the investment industry has created benchmarks and measuring standards, the attempts to create permanent life insurance policy benchmarks and policy standards is a relatively very recent development. This program will look at the process of creating benchmarks and policy standards for permanent life insurance policies, with particular reference for accounting for the volatility of interest/earning crediting over the lifetime of the life insurance policy. The program will wrap up with a summary for both the professional and amateur trustees including guidelines and check lists.
Gary L. Flotron is principal of G. L. Flotron & Associates, and specializes in estate and business planning, and executive and employee benefit plans. He is also an Adjunct Faculty member at the College of Business Administration, University of Missouri - St. Louis, where he teaches courses in estate and trust planning, planning for business owners and professionals, employee benefits and life insurance. In addition, he is an Adjunct Professor with The American College of Bryn Mawr, Pennsylvania. An author and frequent national speaker, Gary has spoken to numerous professional associations and groups.
Mr. Flotron has been an active member in various professional associations. He is Chair Emeritus and a Member of the Executive Committee for the Synergy Summit, an organization and think tank composed of representatives from ten major national legal and financial services professional organizations involved in estate planning. Previously he has served on the Executive Committee and is a Past Chair of the Professional Education and Development Committee for the Synergy Summit. He is a Past President of the National Association of Estate Planners & Councils (NAEPC) and The NAEPC Education Foundation, as well as past Chair of The NAEPC Education Foundation Committee and past Chair of the Accredited Estate Planner® (AEP®) Designation Committee for NAEPC. A past Member of the National Board of Directors of the Society of Financial Service Professionals (FSP), Mr. Flotron, in addition to having served on numerous National Committees and Task Forces, is the current Editor of the Estate Planning Section Newsletter for FSP.
A past President of the FSP Greater St. Louis Chapter, Gary is also a past President of the Estate Planning Council of St. Louis, and past President of the National Association of Insurance and Financial Advisors St. Louis Chapter. He is a past Member of the Board of Directors of the Foundation for Financial Service Professionals and a past Regional Chair for the National Council of The American College. Mr. Flotron has also served as a Member of the Chartered Financial Consultant (ChFC®) Curriculum Advisory Board for The American College.
An MBA graduate of the Washington University John M. Olin Graduate School of Business Administration, where he was inducted into Beta Gamma Sigma, the National Business Honors Fraternity; Flotron completed his undergraduate work in engineering management with a concentration in electrical engineering (B.S.E.Mgt.) at the University of Missouri at Rolla (now Missouri University of Science and Technology). He received the Chartered Life Underwriter (CLU®) designation in 1984 and the Chartered Financial Consultant (ChFC®) designation in 1985, both granted by The American College. In 1995 he was awarded the Accredited Estate Planner® (AEP®) designation by NAEPC. Gary is the 1996 recipient of the Stan Towerman Excellence in Professional Education Award from the FSP Greater St. Louis Chapter, and a 1994 recipient of the Paul F. Mills Scholarship from the Foundation for Financial Service Professionals. He was inducted into the National Association of Insurance and Financial Advisors St. Louis Chapter Hall of Fame in 2003. The University of Missouri – St. Louis named Mr. Flotron as the recipient of the 2014-2015 Chancellor’s Excellence Award for a Part-time Faculty Member.
In addition to his professional activities, Flotron is involved in other civic and social organizations. Some of the organizations and activities that he has been involved with include: The St. Louis Zoo; St. Louis Zoo Safari Club; Retired Greyhounds As Pets (REGAP); Rescued Racers; Wild Canid Survival and Research Center (Wolf Sanctuary); The World Affairs Council of St. Louis, host for foreign dignitaries and international visitors; World Trade Club of St. Louis; Missouri Athletic Club; and various political campaigns, including being the Campaign Committee Chair for (Franc) Flotron for Congress 2000. He is also a past President of the Frontenac Forest Subdivision.
Gary has two sons, Paul and John, a daughter in law Anna who is married to John, and one grandson, Luke, and one granddaughter, Liliana. Flotron's hobbies include reading and learning, traveling, exercising, hiking, modern era architecture, photography, and walking/running his greyhound Jackson (at least in spirit and until he gets another greyhound). Gary’s response when asked “what is something about you that is unique and most folks are unaware of?” is “that he had a dinner party in his home for a man that subsequently led a coup d’état and is now the President/Dictator of an African country.”
Roasted Breast of Chicken stuffed with Wild Mushrooms and Baked in Puff Pastry
with Madeira Sauce, served with Rice Pilaf.
Russian River Salmon
Grilled Filet of Salmon on a bed of Blanched Baby Spinach
with Shiitake Mushroom Relish and Pinot Noir Butter Sauce
Dinner selection includes choice of Salad, Dessert, Chef’s Choice of Starch, Seasonal Vegetables, Rolls with
Butter, Freshly Brewed Coffee, Decaffeinated Coffee, Hot and Iced Tea Service.
Please make your entrée selection when you RSVP.