Legal Question in Wills and Trusts in Pennsylvania

Is this a crime? No. So its legal. Could there be negligence? Perhaps.

While you live in PA, that is not relevant. Its where your parents lived just prior to their deaths. That is the law that will govern.In answer to your question, it sounds like this is a named designated beneficiary asset. If that is the case, its not a probate asset and would not be a part of a will or trust. Examples are things like life insurance, IRA, annuity or a bank account with a payable on death/transfer on death designation.

However, you suggest that the funds were deposited into your parents' estate. If this was proceeds from a non-probate asset, then why would they be deposited into the estate? While there are incompetent lawyers out there, this would really be stupid so there probably is another explanation. Or it could be that this was a probate asset after all and does need to go into the estate. Unfortunately, its not possible to know whether what the estate lawyer did was proper without knowing the details of your parents' estate, such as when they died, if they had wills, what assets they owned, what debts they had etc.

I suggest that you contact the probate court where your parents lived and see if an estate is open. If so, you need to copy the will, if any, and any inventory or accounting and find a probate lawyer who practices in the county where the estate is pending and pay for a consult with him/her. If there is no estate file, then you need to be prepared to provide as much information as possible to the attorney you get - particularly details about your parents' assets.