by iheartmacs » Sat Nov 14, 2009 11:59 pm
My mother died in 2009 after a short illness. She had made me the beneficiary of her IRA annuity in 2006, two years before my stepfather died (he was the beneficiary previous to 2006). AGI calls it an insurance policy. My step sister is the executor of our parents Living Trust and is mad because AIG would not tell her anything about the policy since she is not on it. She now says that she is going to subtract $50,000 from my share of the trust pay out because I got the insurance benefit. It was not $50,000, far less after the taxes were taken out. Can she do that?
Posted: Tue Nov 17, 2009 12:03 pm Post Subject:
I know, but it just "should not" happen in families...It's a shame that this OP's parents went to the trouble of setting up a trust, but then rather than (apparently) setting out their desires, they gave one child the power to disinherit any of the others...dang shame :cry:
Posted: Tue Nov 17, 2009 01:26 pm Post Subject:
OP, it's a good thing that you have an attorney.
Your sister does not have the power to legally cut you out of the trust. She also has a fiduciary responsiblity to keep the money safe.
Posted: Tue Nov 17, 2009 01:51 pm Post Subject:
Well, I wrote a letter to my sister's attorney, (my attorney ok'd it) and all the other beneficiaries, saying that I was protesting them taking the money from my portion of the trust's distribution, and was the rightful beneficiary of the insurance policy and not the trust, so it was not their business. I also told them that i would look into invoking the trust's NO CONTEST CLAUSE. - "If any person or persons shall contest this declaration or in any manner attempt to have it or any of the TRUSTS or beneficial interests created by it declared invalid, such person or persons shall receive One Dollar ($1.00) under this declaration, and the TRUSTS herein established shall be administered and distributed as if such person or persons had died before either of the CREATORS; provided, however, that nothing in this paragraph shall apply to the CREATORS or the Surviving CREATOR."
I think that if she takes it on herself to change the trust to the extent that I am cut out of it, then she is invoking this clause. I dont know if it would be found to be true in this case, but worth a try. At least put her on edge and leave me alone.
I have now been called "greedy" by my other step sister. I spent the last 13 years living next door and the only one who was always there for them for anything they needed. I never asked for anything above the other kids. Never asked my parents to change anything. My mom put me on this policy without me knowing it for over two years. It was only on her dying bed that she told me of the policy. The one calling me greedy has never gone out of her way to do anything for our parents. All she ever did was get a loan from them to buy her house. The one who is threatening to take my share also got a loan of over $100k to start the husband's business. We bought our house without a loan from them and my business was built from the ground up. by me. I know it brought a lot of pride to my mom to watch it grow these last 20 years. There I go crying again...this just has me so worked up.
Sorry, but I am just venting here and that is not what this forum is for, please forgive me. I just wanted to make sure the insurance was rightfully mine and not the trust/estate as my step sis is saying.
Posted: Tue Nov 17, 2009 03:54 pm Post Subject:
VENT AWAY!! That's why we're here.
Posted: Tue Nov 17, 2009 04:09 pm Post Subject:
Thank you guys. I am just too sensitive and most of the family is on my side. It is the few who make snide remarks that make me feel bad, even though I know it shouldn't . You guys are great!
Posted: Tue Nov 17, 2009 11:15 pm Post Subject:
Honey, I don't blame you a bit...We all know people (usually in our own families-sadly) that NEVER put forth any effort to care for family members but they are the first ones there with their hands out when that dear one passes away.
You just do what you know your sweet Mama and Daddy would've wanted you to do. And hell with the rest of them. You can sleep well at night KNOWING you were a good daughter to them both.
We're here to help if we can...
Posted: Wed Nov 18, 2009 08:38 pm Post Subject:
I received a letter from my sisters attorney today. He wants a copy of the beneficiary change form and a statement showing how much I received from the insurance policy. I don't have a copy of the beneficiary change form. My mother did that. I sent him a letter from the insurance company stating the date of the change (2006.) I don't think it is any of their business how much I received, as it is not part of the estate. His letter states that time is of the essence and the remaining beneficiaries are becoming concerned with my intransigence delaying the final distribution of the estate. Do I have to tell them about this life insurance policy?
Posted: Thu Nov 19, 2009 11:31 am Post Subject:
I don't have a copy of the beneficiary change form. My mother did that. I sent him a letter from the insurance company stating the date of the change (2006.)
The insurance carrier has this or they wouldn't have paid you...let him try and get it from them...(good luck)..I don't think it is any of their business how much I received, as it is not part of the estate. His letter states that time is of the essence and the remaining beneficiaries are becoming concerned with my intransigence delaying the final distribution of the estate. Do I have to tell them about this life insurance policy?
Crap I had to look that word up...do you know what means?adjective 1. refusing to agree or compromise; uncompromising; inflexible. –noun 2. a person who refuses to agree or compromise,
Man would that tick me off!!! Ask your attorney but I don' know why you 'd have to tell them...The trust doesn't say you have to disclose this right? What I think they may be contemplating is trying to show that you forged that beneficary change. I would think that would be the ONLY way to dock you.
Posted: Fri Nov 20, 2009 09:18 am Post Subject:
What I think they may be contemplating is trying to show that you forged that beneficiary change
I don't think in today's world it's that tough to identify whether the change of beneficiary is forged or not. One problem that the OP would need to bear with is the lapse of time till everything becomes fine. At the most, it would need to undergo further investigation. What do you think?
Posted: Fri Nov 20, 2009 12:23 pm Post Subject:
What do you think?
I have no idea what you said or this means... :?One problem that the OP would need to bear with is the lapse of time till everything becomes fine. At the most, it would need to undergo further investigation.
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