Dad died almost a year ago, and it sounds like this decision needs to be made this week. Dad’s instructions were to just move the annuity, which is with a life insurance company through their credit union, into mom’s name and let it roll. I am in the process of setting up a trust for mom, and as I have been reading about annuities it seems that not only do most people not like them as investments, but that they feel they are rip-offs.
I am am not financially savvy, and through a series of difficult circumstances I am getting handed the financial side of the estate issues to deal with on my own.
I have a good elder care attorney. He is leading me through the trust process with mom, who is heading into dementia. Mom recently had brain surgery which has not helped her cognitive abilities as we had hoped it would. I had planned on getting an accountant after the trust was in place. I hadn’t ever considered doing anything other than what dad had instructed with the annuity.
My parents’ finances were/are very simple. A small house fully paid for, dad had an annuity, mom has an annuity, a CD, two bank accounts. Not a lot of money, but enough.
The one-year date on dad’s death is this Saturday. I know this is late in the game, but is it worth doing a big push to figure out something different to do with the annuity?
My my brother and I share durable POA. Thanks!
my Dad passed away a little over a year ago. He had two annuities and my Mom was the beneficiary. Has anyone talked to the company who the beneficiary is? Assuming it is your Mom.
your Moms financial advisor will be able to guide you as to what is in Moms best course is regarding the annuities. It will depend on whether their is a penalty if it is cashed in etc.
I got a lawyer who specializes in estate planning so we could make sure everything was in place for my Mothers estate.
Also, I would consult with an accountant well versed in estates sooner rather than later as there will be income tax ramifications and depending on your state, inheritance taxes as well upon her passing. Some of these may alter your thoughts on how to best set things up for her.
You need to get yourself named durable power of attorney as well, if you don't have it already, to handle Mom's affairs going forward.
I was not financially savvy either but learned a lot handling things for my Mom after Dad died. It is definitely an educational opportunity and experience. Annuities, I am not versed in, but have heard the same as you.
Best wishes to you.
In your situation, I would roll annuity to mom AND get yourself added as beneficiary if not on there already. The more you set up now, the better. AND get yourself on the Trust - as a "and" not just a beneficiary, so you have access now and immediately after mom's death without the death certificate. Will save you much pain later.
Also be sure there is a will and funeral/burial arrangements and ... even consider getting your name officially on the house. Again, anything you do now...one item at a time will help you later.
My Dad had a couple annuities, and they worked out well for him - I'm sure there are sketchy policies out there, so it really depends on how it was written up. Use those resources that you already have in place. And sounds like your Dad had a lot of this in place, so good for him trying to make things easier on you.
There are annuities (SPIAs) that are a good deal for some people and other annuities that are only a good deal for the salesman who is selling them.
You need to find out what kind this is, how much it will cost to surrender it and what all the options are for investment of those funds.
In all investments, one of the most important questions is what the cost is.