My sibling is stealing my parents insurance policy.

[lgcjc]

I have a life insurance policy in which l am cotrustee with my sister. She has closed our bank account in which we write checks to our life insururance policy. She now writes checks to pay for the irrevocable life insurance policy from a cashiers checks. The insurance benifficiaries are changeable with both the trustees approval. They have been trying get me to sign blank pieces of paper with my name printed on it, but I refused. What can I do to prevent them from stealing my inheritance

 

[quincy]

What is the name of your state?

 

[Just Blue]

I have a life insurance policy in which l am cotrustee with my sister. She has closed our bank account in which we write checks to our life insururance policy. She now writes checks to pay for the irrevocable life insurance policy from a cashiers checks. The insurance benifficiaries are changeable with both the trustees approval. They have been trying get me to sign blank pieces of paper with my name printed on it, but I refused. What can I do to prevent them from stealing my inheritance

Don't sign anything.

 

[lgcjc]

California

 

[Zigner]

Frankly, your post doesn't make too much sense - you have a lot of conflicting terms in there. Life insurance policies don't have trustees. She can't close a joint account without the co-owner's permission. What do you mean by "irrevocable life insurance policy"? Who is covered by the policy and who owns it?

 

[lgcjc]

There was someone writing checks and cashing checks from the account that was not me or my sister. They were checks around $100 each. My sister told me to cancel the account, so I did. My parents created the life insurance for the US the children. Once my father and mother passes away we the children will get the funds.

 

[not2cleverRed]

Frankly, your post doesn't make too much sense - you have a lot of conflicting terms in there. Life insurance policies don't have trustees. She can't close a joint account without the co-owner's permission. What do you mean by "irrevocable life insurance policy"? Who is covered by the policy and who owns it?

Perhaps it is an irrevocable trust set up to own/fund the life insurance policy on the parents. The bank account is for "gifts" that pay the life insurance policy, with the trustee(s) having check writing ability.

However, the trustees, for tax purposes, have to notify the beneficiaries with a Crummey letter every time money is "gifted" to the account, and their rights to exercise withdrawal in certain time frame (30 days). Perhaps OP's siblings seek to get OP to sign a blank piece of paper and then print a Demand Notice on it, waiving OP's right to the OP's share of the "gifted" money, so that the premium can be paid. Who knows. I do agree that signing blank pieces of paper is not a good idea. I also question who "they" is.

I think OP should reread the language of the trust document, and perhaps meet with the law office that wrote up the initial document, because the description sounds very different from what I am accustomed to. (I am the trustee of an Irrevocable Life Insurance Trust (ILIT). I see no way, as a trustee, that I can alter the beneficiaries - nor would I wish to.)

 

[lgcjc]

I am one of the beneficiaries am I suppose to get a crummy notice. Who writes crummy notice? A demand notice? I have never heard of that before. Is there a way I can I prevent a demand notice waiving my rights to my shares of life insurance policy by notifying life insurance company or anyone else?

 

[LdiJ]

Frankly, your post doesn't make too much sense - you have a lot of conflicting terms in there. Life insurance policies don't have trustees. She can't close a joint account without the co-owner's permission. What do you mean by "irrevocable life insurance policy"? Who is covered by the policy and who owns it?

At least in my state a joint account may be closed by just one of the owners.

 

[LdiJ]

I am one of the beneficiaries am I suppose to get a crummy notice. Who writes crummy notice? A demand notice? I have never heard of that before. Is there a way I can I prevent a demand notice waiving my rights to my shares of life insurance policy by notifying life insurance company or anyone else?

Again, you are not explaining the situation well so its difficult for people to give you accurate advice.

 

[not2cleverRed]

I am one of the beneficiaries am I suppose to get a crummy notice. Who writes crummy notice? A demand notice? I have never heard of that before. Is there a way I can I prevent a demand notice waiving my rights to my shares of life insurance policy by notifying life insurance company or anyone else?

All beneficiaries are supposed to get Crummey letters notifying them of gifts made to the ITLT, notifying them of the trust beneficiaries right of withdrawal. This is the job of the trustee(s) of the trust. The purpose of this is to protect the inheritance from taxes. It's an IRS thing. The fact that you are unaware of this, and have not educated yourself, would indicate that perhaps you shouldn't be a trustee. You don't have to be a trustee to be a beneficiary.

Again, review your copy of the documents regarding the establishment of this trust. If anyone competent set it up, all the information will be there.

P.S. Just out of curiosity... Your state is CA. Is that also your parents' state/the state where the trust was created?