Legal Question in Securities Law in Georgia

Do I have a case? A couple of years ago I inherited some money in the form of investments and cash (or so I thought). The financial advisor dealing with the account told me that part of the money was in an annuity and the other part had been distributed, taxes had been paid on it, and it was placed in a separate account. Following that information, I paid taxes on the portion that was left in the annuity under the impression that the rest of the money was fine and didn't need to be included on the tax return considering that it wasn't (supposedly) invested and I wasn't receiving it as a payment for services rendered. NOW I have an ugly letter from the IRS saying I own them 32000 dollars, partially in fees and interest, and all of this due to my general ignorance about financial accounts and the misrepresentation of the status of my accounts when they were transfered over to me. At the time I was 19-20. Do I have a case against my financial advisor?

Asked on 5/01/12, 1:53 am

1 Answer from Attorneys

Scott Riddle Law Office of Scott B. Riddle, LLC

No one here can possibly tell you if you have a case based on your post. Certainly, a qualified tax accountant who did your taxes would have understood to gather all relevant information and file the appropriate tax returns. If you did your taxes yourself, that probably answers the question. Financial advisors are rarely going to be your tax advisers and the paperwork often makes that very clear. Finally, is this your financial adviser, hired by you to handle your financial affairs? If not, there is likely no duty to you at all.

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Answered on 5/01/12, 5:05 am

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