Thirty-six grandchildren say they have been cheated out of their family trust and are now embroiled in a legal dispute with the university where their scientist grandfather taught. 

Edward Lyon, a longtime urologist at the University of Chicago, left his million-dollar fortune to his 36 grandchildren through a trust established by his former employer for his retirement benefits. 

He died in 2019 at the age of 93 at his home in Wisconsin. The urologist had established the trust in 1988 and updated it in 2014 to designate his children as successor trustees, according to a civil complaint. 

The plan stated that the grandchildren were set to receive annual distributions on Christmas and their birthdays, then monthly payments once they turned 60.

However, the Teachers Insurance and Annuity Association of America (TIAA) claimed that a beneficiary designation form was unsigned, and the payments from the trust were never sent. 

Lyon’s wife, Valerie, had declared her son-in-law, Dan Davies, as their power of attorney. 

The lawsuit stated that Davies had signed a form to change the beneficiaries to the couple’s grandchildren and waive Valerie’s spousal rights, as the couple intended. 

TIAA disputed that, claiming that Davies did not have the authority to sign the spousal waiver on her behalf. 

When the family protested, Davies was ‘given a variety of shifting and changing reasons for non-acceptance’ of the trust’s inheritance, according to the lawsuit. 

The family then submitted a claim to the University of Chicago, asking that the retirement benefits be redistributed to the grandchildren’s trust. 

Estate attorney Patrick Agnew submitted the letter in 2022 explaining Lyon’s intent for establishing the trust for his grandchildren so they could receive tax benefits. 

He added that, in his expert legal opinion, Davies had the authority to sign a waiver of Valerie’s spousal rights, citing Wisconsin statutes. 

Agnew also proposed that the University of Chicago draft a new agreement for all 12 children to sign. 

Alice Lyon, one of the couple’s 12 children, told the Wall Street Journal: ‘They said “No” to anything that would resolve it.’ 

‘It’s supposed to go to the grandchildren. It’s his legacy and this hits us all to the core.’

The decision to allocate the trust to the younger generation increases the tax benefits. The retirement account has grown tax-deferred for decades. 

TIAA has denied the family’s claims of negligence. The university has said that it followed the beneficiary rules. 

If the family loses the lawsuit, the money would be given to Valerie’s estate and the trust. The grandchildren could still get their share, but would lose the tax benefits. The trust has been accruing interest and is now almost $2 million. 

Lyon had spent a lifetime at the University of Chicago, starting with his high school tenure at the college’s Laboratory High School. 

He obtained a Bachelor of Philosophy, Bachelor of Science and completed his postgraduate medical training at the university, according to his obituary. 

Lyon married Valerie in 1951 after a stint with the Navy and Air Corps. While researching at the university, he studied the diagnosis, treatment and prevention of kidney stones. 

‘He flourished during retirement with a never-ending agenda of hobbies and projects with his wife, children, 36 grandchildren and 4 great grandchildren,’ his obituary said.  

The Daily Mail has reached out to the family’s representation and lawyers for TIAA and the University of Chicago for comment.