Interference with an expectancy is when a third party intentionally interferes with the rightful inheritance of another using improper means. However, it has not always been found on the statute books in many states although it has been recognized by the Restatement of Torts and and a U.S. Supreme Court ruling. In New York, the courts have never recognized, nor has the legislature passed into law, the tort but a workaround was adopted by an appellate court which used equity as the basis of preventing wrongful gain. When an expectancy has been found by a court to be interfered with, it may impose a constructive trust on the wrongful party if the interference resulted in enrichment. The only problem is that the constructive trust only applies in certain situations and will not provide damages against a party the interfered but never personally benefited from the blocked inheritance. But not all states follow the New York approach, Iowa, for example recognizes the tort and allows a trial court to rule on the matter and impose punitive damages when appropriate. As a result, if a client seems to be in an interference situation look to the statutes of the state or it’s common law to see if the action is recognized and what damages are available.
See Ettinger Law Firm, LET GO OF MY INHERITANCE – INTERFERENCE WITH AN EXPECTANCY, New York Estate Planning Attorney Blog, January 6, 2016.
Special thanks to Jim Hillhouse for bringing this article to my attention.
