The policies are all Whole Life Legacy 12 Pay policies. According to the insurance company, these are “traditional whole life insurance products that can build cash value over the 12-year period during which premium is due, and in the event, annual dividend payments are made.”
The dividend and dividend interest rate is determined annually, subject to changes, and are not guaranteed. The Trust entered into a premium financing arrangement with lender JP Morgan to fund the premiums for the policies.
The Complaint tied to Brian Grodin and Hugo Tomasio
The complaint relates to a sales process and pitch conducted by insurers Brian Grodin and Hugo Tomasio. During this process, the insured requested a policy or policies that would not require additional funding apart from the collateral amount of $13 million.
The Trustee emphasized that the insured had already reached maximum gifting limits under the Internal Revenue Code and did not want to exceed them. The principal in the trust received the same assurances as the Trustee.
