Independent Fiduciary Analysis of
Trust-Owned Life Insurance
Defensible fiduciary evidence
of prudent oversight
The question isn't just whether the policy was monitored. It's whether the trustee's records can prove it.
Would the file clearly demonstrate that prudent oversight actually occurred?
A clear record of the policy and performance reviewed.
Documented concerns and issues were identified and evaluated.
Alternative solutions and strategies were carefully considered.
The reasoning behind the decision is clearly explained.
The evidence and data supporting the decision are documented.
The file is complete, organized, and defensible to any objective third party.
American West Advisory is an independent fiduciary analysis and research firm specializing in trust-owned life insurance. Led by founder Joe Stefanec, whose career began in 1973, the firm helps ILIT trustees and their advisors prudently test existing policies and document what the trust file should show.
Every engagement is document-based, non-sales, and grounded in the policy contract, annual statements, carrier ledgers, and in-force illustrations. The purpose is not to replace the trustee’s attorney, advisor, or insurance professional. It is to provide the independent analytical judgment and defensible evidence layer the fiduciary record requires.
Trust officers and professional trustees.
Estate planning attorneys and related legal advisors.
CPA firms serving high-net-worth families.
Financial advisors and family offices serving fiduciary clients.
A six-step, document-based process designed to show what was reviewed, what was tested, what concerns were identified, what alternatives were considered, and why the trustee’s decision was reasonable at the time it was made.
Identify the governing objectives, policy documents, premium history, annual statements, original illustrations, current in-force illustrations, and other evidence available to the trustee at the time of review.
Reconstruct premium, cash value, death benefit, crediting, charges, and policy-loan history. Compare actual results with original and subsequent illustrated expectations.
Document performance drift, funding shortfalls, cost-of-insurance pressure, loan effects, lapse exposure, carrier changes, and other conditions that may require fiduciary attention.
Use carrier-generated information and scenario analysis to evaluate current sustainability and the potential effect of reasonable alternatives, without recommending products or displacing existing advisors.
Separate facts, assumptions, limitations, and analytical conclusions so the trustee and counsel can understand what the evidence supports—and what it does not.
Deliver a formal written report showing the documents reviewed, tests performed, concerns identified, alternatives considered, decisions reached, and the reasoning supporting prudent oversight.
Prudent oversight is more than receiving an annual statement or obtaining a new illustration. The fiduciary record should demonstrate a disciplined process: what the trustee knew, what was tested, what concerns were identified, what alternatives were considered, and why the resulting decision was reasonable.
AWA is completely independent and non-sales. We do not sell replacement coverage, recommend new products, or work around the trustee’s existing professionals. Our role is to strengthen the fiduciary record while preserving established advisory relationships.
This review is informational only and does not constitute legal, tax, or insurance advice. Any action should be evaluated in consultation with legal, tax, and fiduciary advisors.
A completed AWA review is designed to allow a knowledgeable third party to understand the evidence reviewed, the analysis performed, the concerns identified, and the basis for the trustee’s decision.
The review typically examines the policy contract, specifications, premium history, annual statements, carrier ledgers, original illustrations, current in-force illustrations, loan activity, correspondence, and other materials relevant to the trustee’s oversight responsibilities.
The written report includes an executive summary, scope and limitations, chronology, performance testing, illustration variance, sustainability analysis, material concerns, alternatives considered, independent findings, and supporting appendices—creating a record that can be understood years later without relying on memory.
Use the form to request a redacted sample review or a brief confidential conversation about an existing trust-owned life insurance policy or portfolio.