disinherited in Louisiana

Our father left a will saying he would leave everything split 4 ways, two kids and two stepkids. His wife survived him. She has always said she would split 4 ways. Well, she just passed away, and it turns out that someone thought it was a good idea to sell a terminally ill woman a 15-year annuity. She wanted some monthly income for the remainder of her life, even though she knew she didn't have long to live. She designated her two children as beneficiaries. Bam. My sister and I are disinherited. Her will declares that the estate is to be divided equally among the children, but the annuity takes over half the estate outside the will. Her kids advised her not to take out the annuity, but no one thought to caution her to be careful that she made all 4 children annuity beneficiaries. I don't know if I can ever know whether or not she really meant to disinherit me.
Should I try to find out -- dig further into this? If I can accumulate statements and evidence that she never meant it to be this way, would it matter in court? We don't really want to sue. I doubt there would be much left after legal fees, but we are talking about close to 100K at issue here. To make matters worse, the estate lawyer sent out a letter proclaiming all four children equal beneficiaries of the estate, then had to send out a "corrected" letter after discovering the annuity. Ouch. It was like winning the lottery, then discovering someone had made a mistake.
My sister is on good terms with the SOB who sold stepmom the annuity, but as she pointed out to me, he has nothing to gain by being forthcoming with answers. Either he screwed us out of our inheritance, or he has to tell us that our stepmom was knowingly being vindictive.

There is really a nice commission on a 15 year annuity.

yep

Her kids had told my sister, before we knew about the "disinheriting," that they thought the broker made money on their mom, but I guess they actually owe him some gratitude now. I hope the broker enjoys that commission and sleeps well at night. I'm sure he will.

What kind of annuity was this? An immediate annuity? Since you mention, "She wanted some monthly income for the remainder of her life...", that is what it sounds like. I am about as critical of annuity peddlers as possible. But, if it is an immediate annuity, I'll make at least a limited tentative defense of the seller before you call him an SOB. Immediate annuities just do not pay an outrageous amount in commissions. Wihtout knowing the terms, I would not condemn him. Immediate annuities are an excellent tool for insuring part of one's retirement income stream.

Frankly, I don't know how far you would get in contesting the annuity beneficiaries. It appears that her kids played no part in influencing her decision to purchase and the naming of the beneficiaries. And what would the seller have to gain by excluding you and your sister? It just seems more likely that your stepmother acted without thinking too much about it.

Okay

I shouldn't have called him that. I don't know what he gained from it. I looked, and they are 10 year annuities. I'm just mad, and I don't really have anybody to be mad at. Her kids didn't ask for this, but they aren't going to give it back, either. I didn't think we had any grounds for contesting the outcome, but I thought I'd ask around just to be sure.

Thanks,

I looked, and they are 10 year annuities.

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Yes, but what type of annuity? An immediate annuity (that is one where you hand over a chunk of money to the insurance company and begin to receive a monthly, quarterly, or annual payment back)? A fixed annuity? A fixed index annuity? A variable annuity?

If you and sister have a couple bucks, you might at least consult with a Louisiana attorney. I would not be optimistic, but you can never tell what sort of precedent might be lurking in Louisiana case law.

trying to understand

Well, it turns out there are three annuities. Two are recent ones sold to my stepmom. I hadn't realized this before, but one is my dad's, from three years before his death, that then, apparently, became hers. It is called "Platinum Fixed" and increased in value. Of the two recent ones (originated last year), it looks like one increased in value (also designated as fixed) and the other decreased, paying out money already. So I guess I can assume that one of them, the largest, is an immediate annuity (doesn't have a term) and the other not.
The fact that the stepkids are named as beneficiaries on the annuity that was originally my father's means she must have consciously changed this stuff at some point. It's looking more like she meant to do this.
Sorry I didn't have all the facts when I began this inquiry. At least I know a lot more about annuities and estate planning than I did a week ago.

I don't care what they say about anteater in the other threads...he/she may be cranky at times but he/she gives great advice...get thee to a lawyer. It may be a very prudent thing to do.

mojo1951 said:

I don't care what they say about anteater in the other threads...he/she may be cranky at times but he/she gives great advice...get thee to a lawyer. It may be a very prudent thing to do.

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Why, thank you.

I think....

Maybe.....

"Indisciminate kindness is highly overrated."