Bill, a trust officer, identified a policy to be significantly underfunded and the grantor had not paid a premium since 2005. The projected annual premium to mature the policy was $84,020 and with no further funding the policy was projected to lapse in 6 months. The grantor did not want to contribute any more money to the policy and there was only $10,000 of cash surrender value. To thoroughly evaluate all remediation options, Bill requested a preliminary life settlement evaluation from EnTrust Settlements.

The evaluation showed potential to have significant value above the cash surrender value on the secondary market. Bill disclosed this option with the grantor, who then wanted to proceed with the life settlement option. EnTrust Settlements received an initial offer of $250,000. After establishing a competitive bidding environment, the last buyer standing was able to offer $360,000 net of fees. Bill accepted this offer and the grantor could not thank the bank enough for disclosing this option to his family. The life settlement proceeds are now managed by the trust.