Beneficiary of Will Can Proceed with Claim That Attorney Influenced Decedent to Shift Funds Out of Probate Estate

Missouri's highest court rules that the beneficiary of a will who claims that an attorney unduly influenced the decedent to purchase CDs payable to the attorney’s wife has standing to sue because if the CDs are void, the assets will pass through the probate estate. Williams v. Hubbard (Mo., No. SC93853, Feb. 3, 2015) 

Betsy Reynolds hired attorney Kenneth Nelson to draft an estate plan for her. He drafted a will that named Eric Williams as one of the beneficiaries. Over the next several years, Ms. Reynolds changed beneficiaries on two bank accounts, making Mr. Nelson's wife, Sandra, the POD beneficiary. She also closed several bank accounts and purchased two CDs with Ms. Nelson as the joint owner. When Ms. Reynolds died most of her assets passed outside her estate to Ms. Nelson.

Mr. Williams sued the Nelsons, claiming they had exerted undue influence over Ms. Reynolds. The Nelsons asked for summary judgment, arguing Mr. Williams did not have standing because he was not a beneficiary on any of the accounts that were changed. Mr. Williams argued that if Ms. Reynolds had not made Ms. Nelson the joint beneficiary on the accounts, they would have passed through the estate and been distributed to him through her will. The trial court granted the Nelsons summary judgment, and Mr. Williams appealed.

The Missouri Supreme Court reverses in part, holding that Mr. Williams does have standing to challenge the Nelsons' actions with regard to the CDs, but not the bank accounts. According to the court, if Mr. Williams can prove the Nelsons unduly influenced Ms. Reynolds into buying the CDs, then the CDs would be void and would be part of the probate estate. However, the court rules that if the transfers of the bank accounts to Ms. Reynolds were void, the bank accounts would go to the original beneficiary on the account -- not Mr. Williams -- so Mr. Williams lacks standing.

For the full text of this decision, go to: https://www.courts.mo.gov/file.jsp?id=83416 

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