I am executrix of my uncle's trust. We made all necessary arrangements that his assets were all funded under trust account. I ran into a problem with one of his annuities, the largest asset. I worked with my uncle's lawyer and my uncles financial planner to to change the owner of the annuity to the Trust. I thought all was well. Unfortunately, I found out after my uncle passed that the name of the owner had changed but the beneficiary didn't- it still listed my mother!! ...
To follow my uncles wishes with his disbursement- I need the annuity money... now it all goes to my mom... The company that has the annuity- their response- I can always sue my mom, they take no responsibility, nor does the financial advisor.
My mother lives with me, her income is just SS and she has no assets. Everything was set for her to have a minimum amount in assets, just her living expenses.
My mom is in agreement that when the money does arrives that it will be disbursed as my uncle wished, but how will that effect the Medicare look back period... I assume this will be considered gifting money... will i be able to show proof that the money should never have been hers because their was a problem with the annuity? Does she have to now pay taxes on all of this?