How can I claim an inheritance from a will if it's in a trust account?

Full question:

August 20, 2009To Whom It May Cocern:My friend, x died in October, 2003. My parents informed me about a month after his death that I was named in x will to received $187,000.00. My parents stated to me that x wanted me to have the money to _'pay in full_ for a condo or house which at that time, I was in the process of purchasing. My parents also told me that x said he would trust them to do with the money what they decided was right for me. They decided that they wanted me to have the money for _part of a down payment_ on a house or condo . My parents stated that the remainder of the money would be set up in a trust fund for myself at Merrill Lynch and that this account would be in their names as owners. As I was gong through a divorce during that period, their lawyer suggested setting up the account in their name for my protection in case of repercussions in the divorce settlement.The amount deposited into the account at Merill Lynch in 2004 was $150,538.00.They did not inform me if all the money was going to be invested and I never received any statements regarding that investment.My Parents also had my mortgage loan set up through Merill Lynch for the condo that I purchased.I closed on my condo on July 1, 2004 and $36,000 of the original $187,000 went to a down payment for the condo. I was also told by my parents that x willed $42,000.00 to my brother for his schooling.My brother did receive the entire portion that was willed to him.I recently spoke to the financial coordinator, x from Merrill Lynch and she stated to me that this money was _not in a true trust fund_ and that I am only listed on the account as a beneficiary and the money will be transferred to me in the event of my parents death.Could you please advise me as to what direction I should take to become the owner of this account that was willed to me as an inheritance from x.Your immediate attention would be appreciated.

• Category: Wills and Estates
• Subcategory: Will Contests
• Date: 04/07/2025
• State: Ohio

Answer:

The answer will depend on the will's wording, including whether your parents were named as executors and their discretion in handling the money. Generally, executors have a fiduciary duty to fulfill the testator's wishes. This duty requires them to act in good faith, keep estate money separate, maintain detailed records, avoid personal profit from estate transactions, and not transfer estate assets to themselves unless explicitly allowed by the will or a court order.

If there was a breach of fiduciary duty, various remedies may be available, such as a petition for accounting, a claim of breach of fiduciary duty, theft, conversion, or fraud. Fiduciaries owe two main duties: loyalty and care. The duty of loyalty means they must act solely in their clients' interests, avoiding conflicts of interest. The duty of care requires them to perform their functions competently and thoroughly.

To prove a breach of fiduciary duty, you must show: (1) a trust relationship existed, (2) the fiduciary breached their duties, and (3) you suffered damages. Defenses against such claims may include the statute of limitations, lack of fiduciary relationship, lack of standing, or approval from the plaintiff after full disclosure.

Conversion occurs when someone wrongfully uses another's property. To succeed in a conversion claim, you must prove you demanded the property back and the defendant refused.

The agreement between you and your parents about holding the money during your divorce is also important. Contracts, including oral ones, create enforceable obligations. However, proving the existence and terms of an oral contract can be challenging.

In case of a breach, remedies include money damages, restitution, rescission, reformation, and specific performance. Promissory estoppel may apply if you relied on a promise to your detriment. Courts may declare a constructive trust to prevent unjust enrichment, which occurs when one party benefits at another's expense.

In summary, you may need to seek legal advice to explore your options for claiming the inheritance and addressing any potential breaches of duty by your parents.