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Life insurance policies and annuities in estate?

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M

Marmee

Guest
My husband's mother passed away 10 months ago, leaving very little in her checking account. The majority of her money was invested in annuities, which all had names of beneficiaries. Two life insurance polcies had my husband's name on it, two CD's had my husband's name on it as a joint account with his mother as well as her checking account was a joiont account - payable on death to survivor. All the annuities had POD on them. My husband cashed in the CD and the life insurance policies. Now his brother, who wriggled the executorship out from under him, is taking my husband to court to get the life insurance policies returned to the estate as well as the CD's and the chekcking account, which my husband gave to him anyway to use to pay the bills for the estate. The brother (executor) refuses to use any of his money (the money he inherited) to hap for his share of the bills. All assets from her apartment were split between the two boys.

The executor is also trying to get the son of a deceased brother to pay one third of the estate bill - the grandson was excluded from the tangible property of the estate according to the will, but if there was any money left over from the estate, he would get one third - and the executor does not want the grandson to get any more money. The grandson received annuties. The grandson received nothing from the estate property, but is being told he has to pay one third of the estate bills.

The whole thing came up because my husband received most of the annuities, because his mother wanted him to have more, the grandson got second most, while the brother (executor) received less - and that is way mother wanted it. My husband took care of his mother for most of her life, whereas the brother hardly ever showed up or cared..that is, until two months before her death from cancer.

We are trying to work with the estate attorney on this, but I am afraid he is not a good one...we are from Wisconsin. The executor believes that since the grandson benefited from her death, he should pay one third of her state and federal taxes.

Questions are:
ONE: Are the life insurance policies and annuities considered outside of the estate and will? They did not come directly from the estate. Meaning that those who received the annuities or policies as POD are not liable for paying the estate bills just because they benefited from her death?

TWO: How do we go about removing the executor from his position as he is not fairly representing the family - he is thinking of no one but himself. He is very jealous that his brother received more.

Thanks!
 


ALawyer

Senior Member
First, I am not from WI so this is just conjecture.

Get another lawyer if you feel the one you have is not good.

It sounds as if the brother is wholly unreasonable. I assume, however, he was named in the Will as exexutor; otherwise, how did he get to be named executor?

The expenses of the estate are typically paid out of the assets in it, and not assessed evenly among all beneficiaries regardless of share. So if 1 gets 80% he effectively pays 80%.

The annuities and accounts in joint name are normally NOT in the estate for probate purposes (but are for tax purposes) BUT there are some exceptions in some states, depending on timing, etc. You need to sort this out with a good lawyer in WI.

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This is intended as general information only and NOT LEGAL ADVICE. You are not my client, and I have no obligation of any kind to you. To retain a lawyer, go to http://AttorneyPages.com
 

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