Wells Fargo faces lawsuit over trust mismanagement

SAN FRANCISCO – Wells Fargo is currently facing legal action for alleged negligence and breach of trust related to a living trust mistake made more than two decades ago. Jacqueline Lowe filed a lawsuit against the financial institution, claiming Wells Fargo employee Blake Kymen’s errors in April 1997 caused her significant financial consequences.

The lawsuit centers on incorrect birth date information in the beneficiary’s living trust, which resulted in 272,305.56 RMD not being delivered over the years and a $130,000 IRS penalty. These penalties result from incorrect required minimum distributions (RMDs), a key element of managing a retirement account that sets the minimum amount to be withdrawn each year starting at a certain age.

After Kemen’s death in 2019, Oscar Hernandez took over management of Lowe’s Trust. However, the trust was transferred to Morgan Stanley for management. Despite the regulatory change, the consequences of the initial error led Lowe to seek compensation. These damages are intended to cover the increased tax liability she faces, as well as the associated costs of legal and accounting services needed to address and remediate the matter.

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