What does "estate" include? Brother wants insurance, annuity proceeds for which I am beneficiary.?

Question

Am executor of Mom's will, she left $4000 Brother and I split services cost,I paid remainiing bills from my money so that he would have some "inheritance" from the estate. Otherwise, he would have been left with nothing. Will states he was left the estate because Mom gave me money before, and mentions that "other considerations" were made for me.There is an insurance policy and an annuity listing me as beneficiary, one annuity that lists us as co-beneficiaries, and one annuity that lists him as beneficiary. He claims all of it, saying Mom meant to leave it to him because she gave me $ years before. He says she meant for it to pay for services, or she thought the will would override the beneficiaries. Dates on these policies predate the will. He wants it all. He paid for more than we agreed on (like plane ticket for son) mentions how little he got, mentions gas to drive here. What is "estate" What should I give him? Please help.

State is Illinois. Was his son. He got all the $4000. I paid my share of expenses from the insurance policy money I received. No other siblings.He and I agreed on fairly minimal services. After talking to other family members, he decided he wanted much more. He traveled quickly to the funeral home and would not give permission for what he and I had agreed on.I told him this was his decision and the extra cost was his. Now he complains that he has little money left, keeps saying Mom wanted him to have all the money from all the sources. 1993 will, never changed. Annuities and life insurance were done before will. She changed only one beneficiary (from me to him) in these years.I assume the attorney ensured she understood everything. Money she gave me years ago and what I just received, equals more than he received. Current amounts were about equal before his expenses. We aren't talking much money. I doubt brother will meet with anyone for clarification. He got less, is mad, wants more

Answer 1

The money from the life insurance and annuity passes directly to the named beneficiary. An annuity is a life insurance product, issued by insurance companies (life insurance in reverse). Legally speaking, this money is NOT considered part of Mom's estate.

Your brother sounds selfish and ungrateful for what he is getting so far.

Had your mom wanted the beneficiary information any other way she would have changed it. Executors do not have the legal responsibility or right to dole out life insurance or annuity proceeds.

You each will get a check from the insurance companies in YOUR name. Personally, you are under no obligation to give him any of that (unless you would want to gift some to him. He would have to pay gift taxes on that at tax time for any gift over $12,000).You have paid all of mom's bills with your half of the $4000, a very generous thing, and did not have to do it. He is an ungrateful pig.

What do you mean he paid for more than agreed on (plane ticket for son, gas to get to the hometown for the funeral). So did you, probably, if you split the costs. (Was it your son? Or his ? If it's your son reimburse him for his share of the plane ticket and let the issue go).

Everyone bears personal costs in traveling for an event. Is he saying he wouldn't have paid those costs if he knew that he wouldn't be getting all the money? Would he have skipped the funeral, for heaven's sake, knowing that there wouldn't be a payoff?

Your brother is getting his annuity and 1/2 life insurance proceeds upon her death. So are you. Your mom was fair. He is lucky he is getting anything at all, given health care costs which could have taken your mom's entire savings, as she could have borrowed against the annuities and life insurance and left you both with nothing.

It would be wise for you both to pay for and sit down for 1/2 hour with an attorney (or a banker, which would probably be free) for advice and have either of them explain how the system works. You can do it by a three-way phone call if it would involve extensive travel to meet. This person could give an objective assessment of insurance/annuity proceeds, the role of the executor, the terms of a will, and so forth. Your brother then would get the information from a third party and would have no reason to hold anything against you.

Answer 2

Of course, all this depends on the state that you are in, but, in general, insurance proceeds are not part of the "estate." In some cases, the beneficiary of an insurance policy may be a trust, but often it is an individual, which appears to be your case. Look at it this way, your mother owned certain things, money in a bank account, perhaps a home, perhaps a car. When she dies, all this falls into her estate. What didn't she own prior to her death? The insurance policy benefits! In fact, by listing you as a beneficiary, you have a type of ownership of said benefits even before she dies (although she could change that at any time, but it becomes irrevocable upon her death).

As for the annuity, I wasn't able to determine if this was like an insurance policy or not. Likely, it doesn't matter. The fact is that a bank account with a death beneficiary listed, an insurance policy, and any other type of financial instrument with a death beneficiary listed all act the same. Upon the death of the owner, the proceeds cease to be owned by the original owner and do not fall into the original owner's estate. They completely bypass the estate. What you say about the annuities suggest to me that they act in this way.

Your brother says a lot of things that your mother allegedly said prior to her death. This is not unusual when someone dies. Otherwise reasonable people whom you love become highly insane when there is suddenly money in the picture and it is slightly unclear where it goes. Trouble is, the financial institutions who would pay out the insurance benefits and the annuities aren't going to take your brother's word for it. They will pay the beneficiaries as stated or let the courts decide. Yet, there is a presumption that any will or listing of death beneficiaries was the desire of your mother. Presumably, she meant for everything to be split the way it reads in the will and in the listing of the death beneficiaries. If your brother wants more money, he's going to have to convince a judge that either you unduly influenced your mother to give you more (and asking for it and giving her a little guilt isn't undue influence; there must be something that strains justice) or he has to show that she totally misunderstood was she was doing (or perhaps was insane). But proving in court undue influence or a major misunderstanding is going to require more than just your brother's word.

It is interesting that the will states that she left nothing in the will for you because she gave you money before. I'm not sure exactly what she said, but one might argue that this could be used in part to show that she meant to change the death beneficiary listings. Of course, if she had years since the will was signed to change those listings, the will's statements would have less impact. Moreover, I would think your brother would need more than the will's statements and his own self-serving statements.

My advice for your brother would be to take what he can get and leave you alone. If he wants to pay a lawyer to go down this road, I suppose the lawyer can take the entire estate for himself.

Of course, it is always best to speak with an attorney about the details of your exact situation and I can only speak about California law.

Answer 3

Without knowing what state you are in, and without reviewing the documents in question (the will, the annuities, etc) no legal professional here can give you a definitive answer.

GENERALLY (and there are lots of execeptions) an annuity or life insurance policy which names a benficiary passes outside of the will, and is not part of the estate. In many states this is also true for property held jointly (bank accounts, real property, titled personal property). HOWEVER, in some states, jointly owned property is claimed for inheritance tax purposes.

You need to consult a probate attorney in your state for more specific answers. For a referral to a probate attorney in your state, contact your local or state bar association.

Answer 4

estate could include property (everything from thimble collections to cars and house), stocks, bonds, savings, checking, safe deposit boxes, insurance. sounds like he's upset that you got the cash. any expences he had to pay for son, etc. is out of his pocket and shouldn't apply against the estate. get some legal advice. find a good paralegal (they are cheaper). looks like he's gonna get nasty.

Answer 5

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