Civil practice – Interpleader – IRA

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Where an interpleader action has been brought to determine the proper disposition of a decedent’s IRA account, the decedent’s sister is entitled to the proceeds.

“… On the one hand, Michael [Kamio]’s estranged sister, Mariko Kamio, contends that she was named as the contingent beneficiary for this account when it was created in 1991, and, where her parents (the original primary beneficiaries) died long ago, Mariko claims that the IRA’s funds should pass to her. On the other hand, Michael’s wife, Elizabeth Kamio, says that Michael later name her as the account’s beneficiary before he died and that the proceeds should go to her — not Michael’s estranged sister. …

“On or about April 14, 1991, Michael Kamio (‘Michael’) applied to open an Individual Retirement Account (‘IRA’) with Plaintiff Charles Schwab & Co., Inc. (‘Schwab’). …

“Michael’s IRA is governed by a written agreement with Schwab (the ‘Schwab Agreement’) which, among other things, sets forth specific requirements that Michael had to follow if he wanted to change the beneficiary of Michael’s IRA during his lifetime. …

“… In short, there is no cogent admissible evidence in the summary judgment record that would substantiate Elizabeth’s belief that Michael ever substantially complied with the terms of the Schwab agreement by submitting to Schwab (1) a change in beneficiary in writing; (2) on a form prescribed by Schwab; and (3) that such change of beneficiary form was placed on file with Schwab. …

“… The screenshots, as Schwab confesses, have no backup that would substantiate them or demonstrate Michael’s substantial compliance with the IRA’s terms, and no witness can say why these screenshots say what they do. That is the missing link. …

“… Nobody — not Schwab, not Elizabeth — can explain why the screenshots identify Elizabeth as a beneficiary. And nobody has testified or could demonstrate that Michael substantially complied with the IRA’s terms to change his beneficiary. This evidentiary failure ultimately dooms Elizabeth’s claims to the IRA’s funds here.”

Charles Schwab & Co., Inc. v. Kamio, et al. (Lawyers Weekly No. 12-023-25) (15 pages) (Hornstine, J.) (Suffolk Superior Court) (Docket No. 2284CV02298H) (May 27, 2025).

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