Nick1994
$100 site donor 2024
Life insurance is non-taxable.
When you file the Annutiy death benefit they'll send you a check, then at tax time you'll get a sheet to file your taxes with. They'll have that info for you when you make the claim.
I Need Some Inheritance Advice
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When you file the Annutiy death benefit they'll send you a check, then at tax time you'll get a sheet to file your taxes with. They'll have that info for you when you make the claim.
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I say YOU need an estate / elder lawyer FIRST.
Let him/her guide you to an accountant/ fiduciary from there.
After that, you could or could not advise your siblings to do the same.
Are you the executor?
Let him/her guide you to an accountant/ fiduciary from there.
After that, you could or could not advise your siblings to do the same.
Are you the executor?
The money is in a Trust and I'm a Trustee and beneficiary
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Yep, I agree with you about seeing a lawyer.
Different states have their own rules on administering a trust so any advice here that is based on our own personal experiences may not apply to your circumstances. That being said, here are some general rules that were appropriate to my trustee position for a California trust.
1. Educate yourself before your visit to the lawyer. $300 an hour is an expensive way to be taught. Get advice, but don't allow the attorney to milk billable hours.
2. In Cali, all beneficiaries needed to be notified by letter of the trust and it's execution.They have 120 days to contest. If they request a copy of the trust during that period the clock starts again upon receipt that copy. To avoid resetting the clock, I sent all beneficiaries a copy of the trust and amendments with the letter. 120 days later I could distribute and the trust was uncontestable by the beneficiaries.
3. Life insurance can be tricky. I was unable to collect on a small policy without starting probate. That would have cost more than the payout of the policy so I didn't. On a larger policy, probate may be worthwhile.
4. Bank accounts and property titled in the trust name can be transferred to your name as trustee by bringing in death certificates and a copy of the trust. Bank and brokerage accounts were easy. California real property was easy, the County did it for me (they have the incentive of collecting higher taxes). Nevada not so much, I'll probably have to go through an attorney or title company for that transfer.
Good luck, and if one of the other beneficiaries complains, pay it no mind. These things can bring out the worst in some people. As long as opposing lawyers aren't racking up the hours you are doing it right.
1. Educate yourself before your visit to the lawyer. $300 an hour is an expensive way to be taught. Get advice, but don't allow the attorney to milk billable hours.
2. In Cali, all beneficiaries needed to be notified by letter of the trust and it's execution.They have 120 days to contest. If they request a copy of the trust during that period the clock starts again upon receipt that copy. To avoid resetting the clock, I sent all beneficiaries a copy of the trust and amendments with the letter. 120 days later I could distribute and the trust was uncontestable by the beneficiaries.
3. Life insurance can be tricky. I was unable to collect on a small policy without starting probate. That would have cost more than the payout of the policy so I didn't. On a larger policy, probate may be worthwhile.
4. Bank accounts and property titled in the trust name can be transferred to your name as trustee by bringing in death certificates and a copy of the trust. Bank and brokerage accounts were easy. California real property was easy, the County did it for me (they have the incentive of collecting higher taxes). Nevada not so much, I'll probably have to go through an attorney or title company for that transfer.
Good luck, and if one of the other beneficiaries complains, pay it no mind. These things can bring out the worst in some people. As long as opposing lawyers aren't racking up the hours you are doing it right.
I was thinking that maybe an EA or CPA would be best since each Annuity and Life Insurance Company are gonna send each beneficiary there share and all we have left to do is to pay the taxes before were free and clear . Thoughts
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Were you part of the forming of the Trust? Is the lawyer that assisted with the formation of the Trust someone you agree with and trust?
I'd start there.
Is there a Will? What does it say about what gets distributed and when?
I am not trying to talk down to you, but you sound very inexperienced with this and I was, too, a few years ago. I've had to handle the probation of my stepfather's Will and property he owned with a sibling....in another state from where he live and died. It's been a huge learning experience.
The best thing I can tell you to do is what I said first - get YOURSELF a lawyer and start there. I would add to make sure this lawyer is WELL VERSED in Real Estate Law, Probate, Wills, Elder Law, etc.
I went through two lawyers in Alabama and I've come to find out NEITHER knew what the heck they were doing.... and they are BOTH Real Estate / Title Lawyers, handling Real Estate Transactions daily for a living. They just don't know about Wills, Probate, etc.... but lied to me and told me they could handle what was needed.
It is important to understand that real estate lawyers are at the very bottom of the totem pole. They are not good enough to practice any other civil or criminal cases so they do the simple title transfers, evictions, etc.
If I offended anyone, too bad. It is just how it is.
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Accountant on the financial side and attorney for the legal stuff
Maybe in your state, but not here. Land transactions can be very complicated and title claims can go back centuries. Title insurance companies don't want to pay out.
Specific land transactions can be hundreds of pages long and custom for each transaction. Not all of course, but your experience is just your experience.
Every field has the good, the bad, and the in-between. Research your picks first, then see if you can afford them.
My oldest sister is a real estate lawyer and has practiced a few different areas of law.
Has her own law firm and learned a lot over the years besides real estate.
No ..... I wasnt part of forming the Trust . No opinion on the Lawyer .
We have a Ladybird Deed on the house . The Lawyer said after it's sold the Title company will distribute the funds to the beneficiaries . Ive contacted the Annuity Companies and Life Insurance Companies to send each beneficiary the claim forms so the money is divided equally . I cant think of any reason to get a Lawyer at this point .
So this is a common problem then.And if the Title Co doesn’t immediately distribute the funds ?
One excuse after another and they keep promising to hand over the funds ?
Sit with a lawyer and spend the money to get professional advice.
1) Does the money from the Life Insurance and Annuities need to go into a Trust Fund or is it better to have it sent to each beneficiary ?
2) One of the Trusts sent a check to me payable to my mothers Estate account , but she doesnt have an estate account and the bank wont cash it . How do you go about cashing that ?
How many times do people have to say sit down with a lawyer? You need professional advice and this is NOT the place to get it.
That's General Advice and not Specific Advice . Not all cases are the same .
dnewton3
Staff member
Most of the salient advice has been to seek a lawyer. Anything past that is circumstantial at best.
BITOG is not the place for specific legal advice.
Locked.
BITOG is not the place for specific legal advice.
Locked.
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