Q: Can a beneficiary take legal action for unauthorized handling of IRA account in Florida?
As the beneficiary of an IRA account with Bank of America and Merrill Lynch, I have experienced unauthorized handling of the account. Despite giving written instructions to a Merrill Lynch representative to maintain the IRA, it was closed at maturity (120 months), and funds were transferred without my request or confirmation following a Required Minimum Distribution (RMD) disbursement in June. I have documentation of these actions, but my inquiries have gone unanswered. Can I file a motion or take legal action to address the mishandling and recover the assets?
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A:
Yes, as a beneficiary, you may have the right to take legal action if the handling of the IRA account was unauthorized. If you have documented evidence that the account was closed and funds transferred without your consent or instructions, you may have grounds to file a legal claim. The first step is typically to gather all your records, including written instructions, communications, and any responses or lack thereof from the institutions involved.
Before considering court action, you may want to pursue alternative dispute resolution, such as filing a formal complaint with the financial institution or contacting the regulatory agencies that oversee financial institutions like the SEC or FINRA. They may assist in investigating the issue and resolving it without the need for legal proceedings.
If those steps do not lead to a satisfactory resolution, you could potentially file a lawsuit to recover the assets or seek damages. Consulting with an attorney who handles financial disputes or estate matters would be important to guide you through the legal process and evaluate your options.
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