So as you may know, the I.R.S. sent a lovely letter last week informing us about an annuity that FIL cashed in and didn't report on his tax return. Read more here: pandce.proboards.com/thread/442911/when-easier
The accountant is reviewing it and we also asked him to amend the state return. Ugh.
Part Two:
As we were trying to get more information about that annuity, the CSR informs us that there is a second contract there still in force. WUT! (I want to seriously beat someone's ass for selling FIL this shit). The agent that sold this to him is dead, BTW.
Regardless, we had to provide documents from the estate before they will tell us anything about this. It will probably be about 10 business days. So we pull out the box we did bring back from FIL's house of random stuff that looked important. In the box we find a contract that was purchased in 2004 for an individual flexible premium deferred annuity contract. It was in a file marked closed that we thought was rolled in with an annuity at his primary bank. (So this is the 3rd of these annuities we've found that he couldn't possibly understand). I've spent about 3 frustrating days trying to make heads or tails out of the 25 pages of info inside.
I really don't feel comfortable just accepting the value and details from the Company that sold this product to him without having it explained to us by someone who knows WTF this all means. Our accountants and FIL's accountant are in Michigan so the end of May is the first time we will be able to meet face-to-face with them. Should we see an attorney or a local CPA? This seems intentionally complicated. Any suggestions?
Oh yes and we will now be going through everything in the house and we will call to verify the status. We never found one statement or any trace of any documents about this annuity only this original paperwork from 2004, placed in the closed file.
I would want to have someone local to speak to about this. Since you guys will ultimately be the beneficiaries, it might be best to have someone in your state that can walk you through the issues now and explain things like tax implications when it is sorted.
I would want to have someone local to speak to about this. Since you guys will ultimately be the beneficiaries, it might be best to have someone in your state that can walk you through the issues now and explain things like tax implications when it is sorted.
We need to get a lawyer/financial planner locally. We actually own more property in Michigan than we do in Texas-only our primary house here with no state income tax. That's why we never changed accountants. My issue is finding someone who completely understands this annuity contract and can explain it to us like we are brain-dead. We are totally worn out.
My g'parents also have holdings (a substantial portion based on their total estate) in shady annuities that were sold to them when they were 80+. WHO THE FUCK sells an annuity to someone who isn't even expected to be alive at the time of the purchase?!?! The agent who sold them to them is no longer with the company. I am working with a local financial guy who works with the company who sells this product (starts with an A...I wonder if its the same company) to figure out what the deal is with them and how to best handle them. They purchased them when they lived in FL. The guy I'm dealing with is in OH. Its worth a shot to reach out to a local to you rep to see if they'll take the time to explain. You can also see if your FP deals with the holding company. Perhaps he can walk you through it. THESE THINGS SUCK!!!
My g'parents also have holdings (a substantial portion based on their total estate) in shady annuities that were sold to them when they were 80+. WHO THE FUCK sells an annuity to someone who isn't even expected to be alive at the time of the purchase?!?! The agent who sold them to them is no longer with the company. I am working with a local financial guy who works with the company who sells this product (starts with an A...I wonder if its the same company) to figure out what the deal is with them and how to best handle them. They purchased them when they lived in FL. The guy I'm dealing with is in OH. Its worth a shot to reach out to a local to you rep to see if they'll take the time to explain. You can also see if your FP deals with the holding company. Perhaps he can walk you through it. THESE THINGS SUCK!!!
That is so wrong. I am sorry for your grandparents too. I've been fuming all weekend. This kind of sales scheme, for something there is NO WAY they could understand, lights me on fire. I am so sorry. No FIL's contract company starts with an M. The one he cashed in with big penalties last year started with an A though. Fuckers.
Jesus, we need a support group. I was so raging pissed when I looked through this stuff. SCAM. It's probably a good that the clown that sold this to FIL is dead. I want to dig him up and kick his ass. I mean as I look through the surrender percentages (which are 3x what they should be according to some reviews I've read on-line and go on for 15 years) I want to smash shit. The maturity date is 2054. You know, FIL was 62 when he bought this in 2004.
My g'parents also have holdings (a substantial portion based on their total estate) in shady annuities that were sold to them when they were 80+. WHO THE FUCK sells an annuity to someone who isn't even expected to be alive at the time of the purchase?!?! The agent who sold them to them is no longer with the company. I am working with a local financial guy who works with the company who sells this product (starts with an A...I wonder if its the same company) to figure out what the deal is with them and how to best handle them. They purchased them when they lived in FL. The guy I'm dealing with is in OH. Its worth a shot to reach out to a local to you rep to see if they'll take the time to explain. You can also see if your FP deals with the holding company. Perhaps he can walk you through it. THESE THINGS SUCK!!!
I have never encountered a product that can be sold to someone over 80. Yikes.
OP- the annuity company should be able to answer any questions you have on the contract specifics. Each product is different so I wouldn't feel comfortable with an explanation from anyone else besides the annuity company. Even on our clients who have annuities with us I still call directly to the annuity company for product questions as there is no way to retain all that information for all the different options out there. There are so many benefits and riders. Your advisor should be able to direct you to the right questions you need to ask though.
My g'parents also have holdings (a substantial portion based on their total estate) in shady annuities that were sold to them when they were 80+. WHO THE FUCK sells an annuity to someone who isn't even expected to be alive at the time of the purchase?!?! The agent who sold them to them is no longer with the company. I am working with a local financial guy who works with the company who sells this product (starts with an A...I wonder if its the same company) to figure out what the deal is with them and how to best handle them. They purchased them when they lived in FL. The guy I'm dealing with is in OH. Its worth a shot to reach out to a local to you rep to see if they'll take the time to explain. You can also see if your FP deals with the holding company. Perhaps he can walk you through it. THESE THINGS SUCK!!!
That is so wrong. I am sorry for your grandparents too. I've been fuming all weekend. This kind of sales scheme, for something there is NO WAY they could understand, lights me on fire. I am so sorry. No FIL's contract company starts with an M. The one he cashed in with big penalties last year started with an A though. Fuckers.
Jesus, we need a support group. I was so raging pissed when I looked through this stuff. SCAM. It's probably a good that the clown that sold this to FIL is dead. I want to dig him up and kick his ass. I mean as I look through the surrender percentages (which are 3x what they should be according to some reviews I've read on-line and go on for 15 years) I want to smash shit. The maturity date is 2054. You know, FIL was 62 when he bought this in 2004.
Maturity dates don't mean much. I push them back all the time for clients because there are income benefits that we don't want to lose. Some contracts I can push it out to no end date.
Now a 15 year surrender is BS. Most firms don't allow anything beyond a 7 year surrender to be sold.
My g'parents also have holdings (a substantial portion based on their total estate) in shady annuities that were sold to them when they were 80+. WHO THE FUCK sells an annuity to someone who isn't even expected to be alive at the time of the purchase?!?! The agent who sold them to them is no longer with the company. I am working with a local financial guy who works with the company who sells this product (starts with an A...I wonder if its the same company) to figure out what the deal is with them and how to best handle them. They purchased them when they lived in FL. The guy I'm dealing with is in OH. Its worth a shot to reach out to a local to you rep to see if they'll take the time to explain. You can also see if your FP deals with the holding company. Perhaps he can walk you through it. THESE THINGS SUCK!!!
I have never encountered a product that can be sold to someone over 80. Yikes.
OP- the annuity company should be able to answer any questions you have on the contract specifics. Each product is different so I wouldn't feel comfortable with an explanation from anyone else besides the annuity company. Even on our clients who have annuities with us I still call directly to the annuity company for product questions as there is no way to retain all that information for all the different options out there. There are so many benefits and riders. Your advisor should be able to direct you to the right questions you need to ask though.
Thank you for responding. I am right now searching out a fee-only FP for us to work with and explain this to us.
I wish I could at least offer you some direction here, but annuities are definitely not my expertise. I really hope you can find someone local that can help you with all of this. I'm sorry for yet another surprise.