Recently a company from PA contacted my brother about unclaimed funds in my deceased father's name. My father had resided and died in Rhode Island. My brother still lives there, and I live in Massachusetts. The company said the stocks would be distributed 50% to my father's widow (our stepmother), and then 50% would be divided between my brother, my sister (who lives in Tennessee) and myself. The company said their finder's fee would be 20%.
We signed initial paperwork stating the company could reclaim the asset with the 20% finders fee not including taxes.
The second round of paperwork was sent to us and asked us to choose one of three options, to pay them the 20% separately; retain most shares, but cash out 20% for the finder's fee payment; or cash out all shares and allow them to take 20%.....
so what we want to know is A) 20% seems a lot, maybe we can do this without going through that company (and yes I understand I signed the first round of paperwork but it doesnt seem to be binding) b) if we do it with the company, and we cash out shares to pay them, are we going to get taxed on those shares? c) are the shares considered inheritance since we weren't listed as beneficiaries on the stock, RI law says next of kin get them, which is our stepmom and us.
any thoughts, ideas? thanks!
We signed initial paperwork stating the company could reclaim the asset with the 20% finders fee not including taxes.
The second round of paperwork was sent to us and asked us to choose one of three options, to pay them the 20% separately; retain most shares, but cash out 20% for the finder's fee payment; or cash out all shares and allow them to take 20%.....
so what we want to know is A) 20% seems a lot, maybe we can do this without going through that company (and yes I understand I signed the first round of paperwork but it doesnt seem to be binding) b) if we do it with the company, and we cash out shares to pay them, are we going to get taxed on those shares? c) are the shares considered inheritance since we weren't listed as beneficiaries on the stock, RI law says next of kin get them, which is our stepmom and us.
any thoughts, ideas? thanks!
