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Trust payout on annuity

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goldenone44

Junior Member
California

My grandfather died recently. In his will he left $80,000 to my mother. My mother died 3 years before he did. This is what it states in the will pertaining to my mother.

Annuity for Gina Kern. Trustors have established an annuity for the benefit of Gina Kern. The Trustee shall deposit funds from the Trust Estate into this annuity so that the principal amount at the time of distribution is equal to Eighty Thousand Dollars ($80,000.00)

The Trustee claims much smaller amount.

Does the statement above mean, the Trustee must deposit funds from the Trust Estate into the Annuity? So that when I receive it that it equals $80,000.00?

If the answer is yes, and the Trustee does not, what should I do about it?
:confused:

The Trustee has sent letters and a copy of the will to everyone named in the will , except me. I found a copy of the will in my mother’s papers. Otherwise I would have never known about it.

Is the Trustee required to do so, being that my mother is named in the will?

Thank You for your time.What is the name of your state?
 


Dandy Don

Senior Member
Please explain your comment "The trustee claims a much smaller amount." What is that amount?

Have you also seen the trust? Have you asked the trustee for a copy of the trust? You need to get a copy of the trust before you can get a complete understanding of what is going on here. The will and the trust are 2 different documents that are administered separately and independently of each other. Just because it says something in the will does not necessarily mean that the trust has to abide by that--the trust has to abide by only what is mentioned in the trust.

If your mother had a will that was probated in probate court, ask the executor to contact the trustee about this. You may be assuming that the money in the trust is payable to your mother's estate (and you may be assuming you will benefit from this money that may or may not be going to your mother's estate), but the trust or trust law might say something different and you need the trust document to help figure everything out after consulting with an attorney.

The trustee may or may not have done anything wrong--ordinarily with an annuity, the money to purchase it is paid in one lump sum when it is purchased (in other words, it should have been purchased with $80,000 at the beginning), so the provision that funds be added to it is somewhat confusing and it is not exactly specific enough to determine what your grandfather's true intentions were when it was set up.

DANDY DON IN OKLAHOMA ([email protected])
 

goldenone44

Junior Member
My Grandfather had a revocable trust, that became irrevocable upon his death. I should not have said his will. The trust document states:

Annuity for Gina Kern. Trustors have established an annuity for the benefit of Gina Kern. The Trustee shall deposit funds from the Trust Estate into this annuity so that the principal amount at the time of distribution is equal to Eighty Thousand Dollars ($80,000.00)

He did it this way to avoid probate. To save time and money when he died.

The trustee says I will receive $13,000.00

I was told by a friend that is going through a simular siduation that the Trustee is suppose to pay any difference from the estate. That according to the statement above the payout is suppose to equal $80,000.00. Not $13,000.00.

I have repeatedly asked for a copy, but have been told I am not entitled to one. My mother was named as the beneficiary in the document for this annuity. the trustee has said that I would recieve this annuity because my mother has passed away. the trust states that the issue would recieve it if the beneficiary is deceased.

I asked my aunt for a copy and she gave me one, as well as I found a copy in my mothers papers after her death. They are identical in everyway.

I do not know if my rights have been violated or not. I did not recieve a notice from her about it like all the other benficiaries did. They all recieved a letter stating that they are entitled to a certain amount.

I do not want to say anything to the trustee until I know she has done something wrong. This is what I am trying to find out.

My Grandfathers intent was for my mother or her offspring to have the full amount by what I undrstand. isn't that why it states: The Trustee shall deposit funds from the Trust Estate into this annuity so that the principal amount at the time of distribution is equal to Eighty Thousand Dollars ($80,000.00)
 
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tecate

Member
Was there a separate annuity in force for your mother, or under which your mother was the beneficiary? It looks to me like the trustee was supposed to give the difference between the balance of the annuity at date of death and $80,000 to the party obligated to pay the annuity. (Usually this is an insurance company.)

Many times these are called "tax deferred annuities" and function like savings accounts.

Do you have 5 brothers and sisters? ($80k divided by 6 = just over $13k)
 

goldenone44

Junior Member
Yes she was the beneficiary. I haven't any brothers and sisters. I was her only child. I take it that if there were not $80,000.00 at time of distribution that the trustee would have to make up the difference. Is this what you Interpret this to say?

From the beginning I had the impression that I was not being told the truth. Other family members (Aunts and Uncles) think the trustee is not trust worthy. They told me to watch my back. They are worried the trustee is up to no good.
 
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Dandy Don

Senior Member
You will need to take the information you have (the trust document) to a trust attorney to have it examined to see if your contention is correct, which is certainly reasonable (that the amount should be $80,000) or whether the trustee has erred (her secrecy towards you is very odd and makes it appear she has something to hide). It is possible that the trustee could have misunderstood the trust or it is also possible that she may be trying to cheat you. Some of the matter should be cleared up when you request an accounting statement, but the language of the trust will be most definitive and should clear everything up. Attorney will also need to look at the probate file to see how the will was handled. You may also want to ask for copies of the trustfederal tax returns if ones were required.

Seems like if the trust was established for the benefit of GINA KERN, it should not have been divided amongst any other parties. Attorney may also want to contact the annuity company to make sure that no beneficiaries were named for this particular annuity.

Best of luck to you in standing up for your rights. Hope this works out in your favor!

DANDY DON IN OKLAHOMA ([email protected])
 
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tecate

Member
Perhaps the annuity has 5 other equal beneficiaries besides you. (My guess is your mother was the annuitant, but these also have provisions for beneficiaries after the annuitant passes.)
 

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