Legal Question in Wills and Trusts in Indiana
Probate Attorney Withhold Non-Probate Funds
Our father died without a Will. We, without difficulty sent required information to the life insurance companies and recieved the payments from these policies. Our father had 2 accounts with Smith Barney. The larger account in which there was about $60,000 had 4 named beneficiaries. I began investigation for the four of us to get these funds. The probate attorney insisted he do this for us. He has gotten the money but insists on keeping it until all the bills have been paid for from the estate. These bills consist of 2 credit cards which should have been paid long ago, and which there is enough other money in the estate to pay. I say the money from Smith Barney is not a part of the probate or estate and this money should have been paid directly to the beneficiaries listed like the life insurance. First, is our belief correct and what action do we need to take? I feel this has been handled inappropriately by the probate attorney assigned as the administrator of our fathers estate and he should never of even recieved the money from Smith Barney and it should of went directly to the designated beneficiaries listed on the account.
1 Answer from Attorneys
Re: Probate Attorney Withhold Non-Probate Funds
Ask the probate attorney for a written accounting of the Smith Barney accounts. Also ask for his written explanation for why he has sequestered the funds. You are correct, that the accounts as described by you are not part of the probate estate (unless there was some equitable theory to support the retrieval, like your father had been bamboozled into creating the accounts.) However, the money in those accounts could be subject to the Indiana Inheritance Tax if the aggregate death benefits received by your father's children exceed $100,000 (each). It is also possible that your probate attorney is a thief. So if he does not promptly account for and distribute the money, you should contact the Disciplinary Commisison for assistance. http://www.in.gov/judiciary/discipline/
Good luck.
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