Question

Do I have to report alternative sources of passive income to Reliance Standard?

Asked on August 29th 2015 by Struggling
I have been disabled and unable to work due to a very rare mitochondrial DNA genetic disorder which is incurable and has no treatment. I have RS LTD and have been receiving benefits since 2010. Last year I had my five year review where they asked personal questions such as do I recieve rent, am I an executed to a living trust, and so on. I have spoken with several LTD attorneys that all have stated that any passive income need not be reported. Yes I recieve SSDI which offsets my benefit. What I decide to do with my income and how I choose to invest it to make it work for me is my business and not a concern of RS. My treatments are not covered by insurance such as stem cell transplants and are very costly as are my medications therefore I needed to find a way to diversify and make my money work for me. Everything I own is in trust which technically means it does not belong to me but rather the trustees and I as executed am the Steward of the contents of said trust. I was informed after my 5 year review I would then not need review for another three years but now I am being told I need to go through the in depth review again a year later. I advocate being a former RN in ensuring that RS recieved all medical documentation. I was quite successful prior to my illness and I am sure RS would like nothing better then to get rid of these monthly payments. Do I need to disclose private information such as a living trust as I understand this is a protected document under HIPPA and the law? My investment properties that I aquire prior to my illness are reported to the IRS but I take a loss so these are not claimed as income. My benefit package from my former employer is clear that RS will replace 60 percent of my base salary as long as I am disabled therefore why are they asking about passive income? Is it in fact true that I do not need to report passive income? Do I not have the right to do with the monies recieved as I please to benefit me? Using a financial planner I place max in both my 401 and 403. I am selling one of my investment properties which is in trust, therefore not belonging to myself but rather the trustees, does this need to be reported to RS? As it will roll into the trust which is a separate entity. Note: I have been ordered by my specialists, five MD’s that to gain a better quality of life and extend my life, that I must move to the beach area for health reasons as I live in the desert and this exacerbates my illness that greatly decreases any quality of life so can this be treated as a prescription and the cost not reported? Thanking you in advance. Anon. Lastly, as my disease in incurable and dejenerative , is there a possibility to settle for one lump sum payment? I thank you in advance.

Answer

Answered on August 30th 2015 by Attorney Stephen Jessup

Struggling, you do not have a legal duty to disclose sources of passive income unless the policy indicates it is some offset to your benefit (which I would find incredibly difficult to believe it would). The benefits you receive from RS to invest and do whatever you chose to- they cannot dictate same. Lastly, there may be a chance that they would offer you a lump sum buyout on your claim- please feel free to contact our office to discuss same.