What to do if we received an inheritance from an annuity, but the company is now claiming overpayment and wants the funds back?

UPDATED: Mar 7, 2012

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What to do if we received an inheritance from an annuity, but the company is now claiming overpayment and wants the funds back?

The company that paid out is claiming there is another person listed as inheritor (which they missed originally) and they overpaid us. They want half of funds back. We do not have the money. Spent it on bills and outstanding loans. Threatening with collection if we do not repay. Do we have any recourse?

Asked on March 7, 2012 under Bankruptcy Law, Texas


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If the annuity payment sent you as part of an inheritance was improperly made due to some mistake, then under the laws of all states in this country, you are responsible for repaying the amount back. The reason is that the money paid you supposedly was not due you and payment was via a mistake.

Since you do not have the money to do so, I suggest that you enter into a written agreement with the annuity company to make monthly installments for what is owed.

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