Trial Law Review

Financial Planners: Beware of Recent Iowa Supreme Court Ruling

Posted by Jamie Modicue on Jan 7, 2014 8:07:14 AM

January 7, 2014. Less than two weeks ago, the Iowa Supreme Court expanded the scope of financial planners’ potential liability to certain third parties. In the case, St. Malachy Roman Catholic Congregation of Geneseo, Illinois v. Ingram, a financial advisor helped the decedent (with legal counsel) create a revocable trust which included the decedent’s residence, to be used for the benefit of specific individuals. However, four years later, the financial advisor helped the decedent execute a will which directed an alternative distribution of the estate, including the residence. After the decedent passed away, his residence was transferred according to the terms of the revocable trust, and not the will, because the residence was still titled in the revocable trust. In short, the attorney and financial planner had failed to take actions to ensure the residence was passed through the will as opposed to the revocable trust.

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Topics: Trial Lawyer on Your Side, Estate Planning Lawyer on Your Side