Estate Distribution to Beneficiary

[Kevin D]

New York State

My father-in-law died 2 1/2 years ago. He had a will which left a brokerage account in his name at Bank of America split equally to six grandchildren and his real property was left to his live in girlfriend. My brother-in-law contested the will and held up probate for a 1 1/2 years at which point the judge threw out his contest and ordered the estate into probate.

My stepson received paperwork from Bank of America in November 2008 to establish a brokerage account in his name so his share of the Bank of America account from the estate could be transfered to his name (it was in the form of mutual funds). In December 2008 the securities were transfered to his account and sold, at which time he requested a check for the proceeds.

In late March of 2009 we received a letter signed by the executor (the girlfriend of my father-in-law) which stated the distribution to the grandchildren by Bank of America should not have occured, as all the estate expenses had not been paid. The letter requests that my stepson return whatever funds he received and that a new check will be issued to him for a lesser amount after the remaining estate expenses have been paid. This letter, obviously crafted by the estate attorney, was sent 3 months after the initial distribution and was not sent registered mail.

My question is, what is my stepson's obligation in this matter? Is he legally obligated to return this money? What if he had spent it, there would be no money to return? In fact, he nearly paid off his college school loans with the money before he received the letter. Three months is a long time for the executor and attorneys to wait to craft a letter asking for the return of the money. What is his legal obligation?

Thank you.

Kevin D.

He is not required to return it unless a court so orders for some reason, and even then he would have to still have the funds to return them.