Lawyer : Longterm Disability Overpayment?

S

Sherman81

New member
my mom called a certain company and she was told that they over paid her a certain amount of money. my question is if "THEY" over paid her a certain amount of money, then shouldn't "THEY" have to pay it back. in otherwords, mom didn't know she was getting overpaid and a year or so later they find out that they made an error and not they expect her to pay for their error.

My question is, should my mom have to pay for a mistake they made, or will my mom have to find a way to make a monthly payment to pay it all back. I think it might have something to do with them not taking taxes out on it or something.
 
I am a retired insurance agent. To help you with part of your question I have this. If your mother gets her long term care policy through an employer and the premium is deducted from her pay it would then depend upon how her premium is deducted. If the premium is deducted from gross pay before any taxes are paid that is known as a pre tax premium. If the premium is deducted from net pay after taxes have been deducted that is an after tax premium. Those receiving pre tax benefits owe taxes on the benefits received. Those who receive benefits from after tax premium plans do not owe taxes on the benefits. After tax people have already paid a tax and pre tax people have not. In the case of pretax they are her benefits and she has not paid a tax and so now has to pay one on benefits received. This is IRS code and has nothing to do with the company other than they made a mistake. Their mistake doesn't change her tax liability. If they simply overpaid her and there is no remedy for that in the policy that would probably be a matter for the courts to decide.
 
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