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 Posted: Fri Jun 19, 2009 12:26 am Post subject: Can an executor of a will withold funds from a life insuranc |
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| I am the beneficiary of a life insurance policy. My step mother put the policy into an irrevocable trust. She is mad at me and told her son not to give me the money from the policy after her death. She can't remove me as a beneficiary, can she legally not give me the money? My share is 1 million dollars. |
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lajones57
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| Posted: Fri Jun 19, 2009 5:23 am Post subject: |
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Hi lajones57
If you are the designated beneficiary and the policy is put into an irrevocable trust, you will not be denied the benefits. An irrevocable trust is a trust that cannot be changed once the documents have been signed. So, don't worry about the money OP, it will come to you.
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sil
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| Posted: Fri Jun 19, 2009 5:48 am Post subject: |
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Hi lajones57,
Why the money is in irrevocable trust? Are you not adult?
I guess your brother is the appointed executor of your stepmother's will. Is he in the trust too? |
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JeremyHolter
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| Posted: Fri Jun 19, 2009 10:19 am Post subject: |
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Hi lajones57,
Well, just as someone said the money should come to you naturally. But as I've seen certain instances, I do question things at times.
Did your step mom ever talk of moving into a probate court?
Steven |
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steven
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| Posted: Fri Jun 19, 2009 11:26 am Post subject: |
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I doubt that you are the beneficiary of the policy. The trust is probably the owner and the beneficiary of the policy. Your step-mom can't do anything because she doesn't own the policy. You are probably a beneficiary of the trust.
The terms of the trust probably dictate when you get the money. If her son is the trustee, he may have some discretion as to when you will get your money. It depends on the terms of the trust. |
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InsuranceExpert
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| Posted: Sat Jun 20, 2009 4:11 am Post subject: |
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| Quote: | | Thank you for your answer. She has moved the policy from one irrevocable trust to another and now states, in writing, that she does not want me to benefit from the insurance policy. Does she have the right to do this? |
This was in left in my inbox.
Well, lajones57 this 'writing' that you are referring to is the will right?
I have attached 2 portions of the irrevocable trust agreement I found in ilrg.com/forms/irrev-trust.html where it is mentioned that if you are the beneficiary in the trust, you are bound to receive the benefits. In the absence (unfortunate death) of the beneficiary it might go to a secondary beneficiary if mentioned or will finally go to the estate.
Check attachment
Hope I could help 
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sil
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| Posted: Sat Jun 20, 2009 6:20 am Post subject: Trust agreement |
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| Thank you for the attachments and your answer. She attached to the "new" trust a rambling letter and in that she stated that she wants my brother to do everything possible so that I do not get a dime. I wonder how she could move the life insurance from one irrevocable trust to another. My children are also named as beneficiaries if I die before my step mother. I have not seen her will but I am certain I am not in it. |
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lajones57
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| Posted: Sat Jun 20, 2009 6:22 am Post subject: |
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Hi lajones57,
I'd request you to come and post in the community. It'd help you in getting responses from different experts.
However,
| Quote: | | She has moved the policy from one irrevocable trust to another |
How did she change her policy from one irrevocable trust to another? The word irrevocable suggests that it can't be amended without the accent of the involving parties.
Okay, now, did she dropped the earlier policy and took out a new one and put it with the new trust?
Please answer to my queries so that we can help you better. |
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jeorge
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| Posted: Sat Jun 20, 2009 6:23 am Post subject: Trust agreement |
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| Are the attacments you sent to me - law? |
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lajones57
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| Posted: Sat Jun 20, 2009 6:26 am Post subject: Trust Agreement |
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| It is the same insurance policy. She created a new trust and moved it to the New Life Insurance Trust. The other (original) trust still exist. In the new trust she does not want me to benefit from the insurance policy. |
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lajones57
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| Posted: Sat Jun 20, 2009 6:34 am Post subject: |
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Which state are you from?? Does your state allow decanting of asset from one trust to another? Who is the beneficiary under the new trust?
Most importantly, who is the trustee? |
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jeorge
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| Posted: Sat Jun 20, 2009 6:50 am Post subject: |
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| Quote: | Are the attacments you sent to me - law?
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Well lajones57,
I picked up this information for you from an online resource ilrg.com/forms/irrev-trust.html on law and legal profession as it runs in the United States of America.
| Quote: | | She attached to the "new" trust a rambling letter and in that she stated that she wants my brother to do everything possible so that I do not get a dime. I wonder how she could move the life insurance from one irrevocable trust to another. |
lajones57, if your state allows decanting, which means that the assets from an existing trust can be moved to a new trust then I think there is something you may worry about. Decanting is possible in some circumstances only. However, the terms of the existing trust must specifically give her permission to transfer or decant the assets to a new trust. If the existing trust instrument does not have such specific mention then the state laws would rule. States like New York, Florida and Delaware allow decanting. Which state are you from?
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sil
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| Posted: Mon Jun 22, 2009 6:25 am Post subject: |
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| Quote: | | I live in Arizona and my step mother has also moved property from a family partnership and given it solely to my brother and step brother. This was property that was promised to me and was in the partnership. Do you know if she can legally do this? |
This was in my inbox
Hi lajones57
I am afraid, the trust may be modified or reformed by court in case there is some circumstantial change that weakens the purpose for which the trust was created. But there are only special conditions under which the terms of the trust may be modified. But I can no more say it isn't possible cause i just read it somewhere.
Can you give us more information than what you have given us? Where does your step mom stay? Is she too in Arizona?
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sil
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| Posted: Mon Jun 22, 2009 9:16 am Post subject: |
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Hi lajones57,
Though you have posted the following in my message box I'm going ahead to post it in the forums so that other members too can suggest their views.
| Quote: | I live in Arizona and so does my step mother. My step mother is the trustee and my brother and step brother are co-trustees. I am still listed as a beneficiary under the new life insurance trust but it is the written instructions that have me worried. She states she does not want me to have any inheritance from the life insurance. We had an agreement in 2002 that in exchange for another trust, we would allow her to use the funds in exchange for a life insuarance policy. She agreed in writing. The life insurance was in a irrevocable trust. She has also taken property that is very valuable from a partnership of which Ii am still a partner and transferred it all to my brother and step brother. Is she with in her legal rights to do this?
Thank you for your help. |
First off, thanks for the updates
So, you had given the consent at the time of changing the trust.
Anyway, if your stepmother is both the trustee and the grantor of the trust then I think its a revocable trust and not irrevocable. And, for the same reason, I guess that the previous trust too was a revocable trust. Can you clarify?
Once you put an asset into the irrevocable trust you relinquish your rights over that asset. When with revocable trust you would have the control over the flow of the asset. |
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jeorge
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| Posted: Mon Jun 22, 2009 11:48 am Post subject: Irrevocable trust |
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The trust is "irrevocable and unamendable" as stated on page 1 of the trust. It states this several times and it is also the title of the trust... The (her name) Irrevocable Life Insuranct Trust. I never gave consent at the time she changed the trust. I didn't know she had done this until 6 months later. Now she has moved the life insurance to a "new" irrevocable trust and it is here where she states she wants my brother, who is the trustee, not to let me have the 1 million dollars. Everyone involved in this lives in Arizona.
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