Tansfer on Death

[Jacif]

Transfer on Death

My family is experiencing an issue with a transfer on death not being carried out by the brokerage firm. The executor who also acted as the attorney and created the will is contesting the signature on the document. The document was witnessed by two of the firms employees. The firm is asking that either the heirs for the executor have a court order to have the transfer take place.

The firm is not questioning the signature however, they state that since someone is contesting the signature a court order is required. This type of document was made to avoid this .... or so I thought. The attorney/executor wants the monies to be included in the estate and go to probate.

The attorney filed this "complaint" in Feburary and has not had a court make a decision to date. The firm has given him another 14 days to show proof that he has submitted the case to the court.

I cannot figure out why they are giving him the time of day. He presented the complaint without notifying any of the heirs.

Any ideas on the subject would help.

NOTES: The will was signed in 1992, The TOD in 1995.

 

[Michael Wechsler]

Re: Transfer on Death

Originally posted by Jacif:
The executor who also acted as the attorney and created the will is contesting the signature on the document. The document was witnessed by two of the firms employees. The firm is asking that either the heirs for the executor have a court order to have the transfer take place. ....The attorney/executor wants the monies to be included in the estate and go to probate.

The attorney filed this "complaint" in Feburary and has not had a court make a decision to date. The firm has given him another 14 days to show proof that he has submitted the case to the court.

Why is he challenging the signature? This is most important to determine. Would there be any practical effect to the change, e.g. different distribution to different heirs? Very strange.

 

[Jacif]

The letter he wrote to the Investment firm stated that he did not think it was his signature however, the Investment firm stated that they do not question the signature but they are required to give the contesting party ample time to go before a judge to rule.

There is a different distrubition to the heirs. Two of the heirs woud aquire the bulk of the estate.

Either way the attorney wins: 1. If the monies go into the estate he will get a % and 2. If they do not he can collect fees for fighting it. This is a fight that the heirs do not want.

The attorney for the investment firm suggested in an indirect way that the State Bar might be interested in the motive. Any suggestions on reporting to the bar?

Thanks

 

[Michael Wechsler]

I was thinking about this but wanted to find out more information before even suggesting potentially jeopardizing this person's livelihood. What is strange here is why this particular attorney waited 10 years to challenge his client's signature on the will he handled. You should send a letter via overnight courier to put the attorney on notice and on the record to provide a viable explanation for this unusual behavior. Give him a chance to give you a reasonable explanation. If you don't get a timely, satisfactory response, then perhaps a complaint to the Bar might be appropriate.

 

[Jacif]

He is not questioning the will he is questioning the transfer on death. There is not a questions in anyones mind except his about the signature. The brokerage house said they have to give him a chance to take the matter in front of a judge. I see it that either way he wins. If the account goes into the estate he will get a % and if it doesnt he will collect attorney's fees.

During this entire precess (almost 6 months) we have only received the initial papers filing for probate. If the monies is not included into the estate it amounts to about $100,000, if it is included we are looking at $600,000.

I dont see how a large brokerage firm can give the attorney so much authority to hold up a document that has nothing to do with the estate. All of the research I have done states that the TOD was passed to eliminate all of this.

Thanks for your insite.

 

[Michael Wechsler]

Originally posted by Jacif:
He is not questioning the will he is questioning the transfer on death. There is not a questions in anyones mind except his about the signature.

My question to you is... what this attorney's basis for questioning the vailidity of the signature on a will that he handled personally? That is the issue I see here.

Perhaps there is a good reason for it. If there isn't any good faith basis for this challenge, then let him explain it to the disciplinary committee and let the chips fall where they may. It would seem that there is a substantial piece I'm missing because such a challenge would seem ludicrous in light of the facts. Then again, stranger things have happened...

 

[Jacif]

I think the confusion is in the document he is contesting. He is not contesting the will, he is contesting the Transfer on Death form for the brokerage account. This document would make the funds NOT part of the estate. Thus he would not receive a fee.

 

[Michael Wechsler]

Originally posted by Jacif:
I think the confusion is in the document he is contesting. He is not contesting the will, he is contesting the Transfer on Death form for the brokerage account. This document would make the funds NOT part of the estate. Thus he would not receive a fee.

Ah... that makes more sense. But why is he contesting it? Are the signatures radically different? Competence of the deceased? What is the basis for his contesting the validity of the TOD?

 

[Jacif]

I have a copy of past signatures and they are the same. The Complience Officer and Attorney for the brokerage house also think it is the same signature. That is one reason we cannot figure out why they would even give him the time of day.

 

[Michael Wechsler]

Originally posted by Jacif:
I have a copy of past signatures and they are the same. The Complience Officer and Attorney for the brokerage house also think it is the same signature. That is one reason we cannot figure out why they would even give him the time of day.

Sounds like something strange is going on. Sounds like you are on top of the situation... hopefully you won't need to post another message about this situation and things will work out more smoothly!! Good luck.