i am the biological parent of 2 teens whom inherited anuitys they want now, how can I get this for my kids.?

Question

my 2 kids are the benificiery of there own annuitys from my mother in law, but the law says that they cant have the money until they are 18, both kids want it now, how can I get that for them.?

Answer 1

Of course they want it now, they are teenagers. Teenagers are impetuous. This is exaclty the reason your mother in law structured the annuity this way, and also probably to keep you from getting the money. You know it is in their best wishes to wait until they are older to determine the best way to spend their money. You will not have much luck changing the annuities. The only possible way around it is if you could find a lender to loan the kids money secured by the annuity, however you are probably not going to find a bank willing to enter into a contract with a minor.

Answer 2

Is your mother-in-law deceased? At the time of death, the annuity is included in the gross value of the estate. In addition, the beneficiaries of an inherited annuity are required to pay taxes on the growth of the account. The tax bracket used is that of the beneficiaries, not of the original owner. Unlike certain retirement accounts that have continuation provisions, beneficiaries must cash out annuities within five years of the date of the original owner's death.

Because annuities are issued by insurance companies, the regulations that govern the insurance industry apply to them as well. Each state has a department or division of insurance which monitors the industry.

Is it a fixed or variable annuity? Variable annuities are expensive compared with many other investments. They often carry costly add-on benefits of dubious value. They are often difficult to convert to cash and selling out is not nearly as easy or financially painless as buying them.

Many variable annuities carry surrender penalties. If you pull the money out before a seven-year term, you pay penalties ranging from 1 percent to 9 percent of your investment.

Here is a number for you to call for more information: 1-888-828-3837.

Answer 3

It would depend upon clauses in the annuity contract-I'd try to get them to hold off, though- it might be fun to have that new car, but cars depreciate along with getting wrecked and stolen, but an education lasts for a lifetime....

Answer 4

Have them read this question, its quite clear.