alt.social-security-disability

"Cheryl" wrote in message
news:2pKdnTVGxsv_KSDanZ2dnUVZ_v6rnZ2d@...
>
> "DrFeelgoodWA" wrote in message
> news:oPWdnRnlSc3Q0yDanZ2dnUVZ_sWdnZ2d@...
>>
>> "Coleah" wrote in message
>> news:2cf7ef14-f446-4a1c-9d10-3cb11edee00e@...
>> On Feb 21, 2:59 am, "DrFeelgoodWA" wrote:
>>> Life insurance companies do not wait 12 years to pay a claim.
>>
>> Insurance companies can hold it in an interest bearing account. Taxes
>> would have to be paid on the interest.
>>
>> That would turn the insurance settlement into an investment account which
>> would need to be reported as an asset when applying for SSI benefits and
>> to the IRS when closed and cashed out. Although the IRS could only tax
>> the interest they would report the transaction to the SSA which would
>> most likely demand repayment of all monies paid during the time the
>> investment account went unreported. They could then file charges of
>> perjury and fraud and would likely do so to set an example for others.
>>
>> Our boy here has admitted he had this account for 12 years without
>> reporting it.
>
> I don't mean to pick a bone here, but he didn't admit he had "this
> account" for 12 years.

Pay no attention to the man behind the curtain. Feely just pulls
nonsense out of his butt......

There are a number of things I can think of right off the top
> of my head that might generate the type of situation where a policy (or
> account) wouldn't come payable to him for 12 years. One being that the
> policy was for the death of a sibling who died 12 years earlier but was
> payable to the parents and other siblings as alternates. The parents let
> the money ride and continue to collect interest for 12 years. The parents
> were claiming the interest income on their taxes for those 12 years. Upon
> their death, the policy became payable to the alternates.
>
> Another scenario that happened to myself involved a policy my grandfather
> held for me. He died when I was a minor. Because I was a minor, the policy
> was then rolled, like you say, into an interest bearing account, in the
> name of my mother and myself with only me listed as the payable party in
> 10 years (with it being payble to my mother in the event of my death
> during those 10 years). My mother claimed the interest on her taxes for
> those 10 years, which was very generous of her, although it was set up
> that way from the start and I did help make up the different in her taxes
> (not much) during several of those years. Granted, I was not on SSDI or
> SSI or any form of welfare at the time the money became payable to me. But
> the point being is that my grandfather died 10 years before I collected
> the money, my mother didn't have to die for me to get the money, and none
> of the money could be counted as a cash value insurance policy during
> those 10 years because neither my mother nor I could, for any reason, draw
> the money out during those 10 years.
>
> I can think of a few other scenarios, but... I'm too lazy to type them out
> right now. :-)