Trustees are a vital component of reinsurance, and choosing the right one can be the difference between a smooth experience and a sticky one.
- The true cost of a trust is defined by more than the dollars, and the time you spend as a grantor or a beneficiary of a reinsurance trust must also be considered.
- Some trustees understand the nature of the reinsurance trust business better than others.
- For a trustee that truly understands the implications of a trust agreement, as well as what the grantor and beneficiary are trying to accomplish, maneuvering back and forth between the legal team should be minimal.
In the world of highly regulated and complex reinsurance business, reinsurance trustees don’t get much limelight (until commencement of the deal, when the trustee is critical). But don’t let their low-profile demeanor diminish their significance. Trustees are a vital component of the transaction, and choosing the right one can be the difference between a seamless and smooth experience, or a sticky and slow one.
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