What Are Signs of Inheritance Theft?

When a loved one passes away, the last thing any family wants to face is the possibility that someone is taking advantage of their inheritance rights. Yet inheritance theft, also known as estate fraud, occurs more frequently than many realize and has become a silent epidemic in our aging society, often perpetrated by family members or other familiar faces like trusted advisors or caregivers who exploit their positions of trust. The harsh reality is that when family wealth hangs in the balance, even the closest relationships can unravel. Worst yet, these crimes betray not just the living but the legacy and final wishes of those who can no longer advocate for themselves. But how can you know when this crime occurs? Here are key signs of inheritance theft to be aware of:

1. Unexplained Changes to a Will or Trust
2. Exertion of Undue Influence
3. Family Members or Caregivers with Unusual Access to the Estate
4. Sudden Gifts or Loans
5. Discrepancies in Estate Planning Documents
6. Missing or Relocated Assets
7. Isolation and Limited Access to Your Loved one
8. Unusual Financial Activity
9. Lack of Transparency
10. “Surprise” Debts 
11. Different Versions of the Will or Trust

Here is what you should know about each of these red flags so that you can safeguard the legacy of your loved one and ensure that you receive the inheritance you are entitled to. 

What Are Common Signs of Inheritance Theft?

Inheritance theft occurs when someone wrongfully acquires assets from an estate that rightfully belong to designated heirs or beneficiaries. This can take various forms, from blatant theft and fraud to manipulations and undue influence exerted on the deceased to hiding assets from estate inventory. 

Essentially, inheritance theft refers to someone wrongfully taking your inheritance, even if it is indirect. Regardless of the method employed, this is a serious matter with severe ramifications, so it is crucial to know the signs of inheritance theft.

“Inheritance theft is like termites in a house’s foundation,” said Nicholas D. Porrazzo, a Partner at Gokal Law Group and an expert in trust and probate litigation who was a Super Lawyers Southern California Rising Star 2024. “By the time you notice obvious signs of damage, significant harm has often already occurred beneath the surface. That’s why we urge families to stay vigilant and act quickly when they spot concerning behavior,” said Porrazzo.  

Related Article: Can a Trustee Withdraw Money from a Trust Account for Personal Use?

1. Unexplained Changes to a Will or Trust

One of the most common signs of inheritance theft is when significant, unexplained changes are made to a will or trust document shortly before or after a loved one’s death. 

These changes might include sudden and dramatic modifications to the distribution of assets or the designation of an executor or trustee. A last-minute change of this nature, especially one that dramatically alters distribution, warrants scrutiny.

Pay particular attention if these changes occurred when the deceased was ill or potentially lacking capacity due to age or illness, and always consult with an attorney as soon as you suspect foul play. 

Porrazzo explained, “When a will is amended under suspicious circumstances, such as shortly before the decedent’s passing or when they were in a vulnerable state, it can be a strong sign that inheritance theft has occurred. This is especially true if the changes disproportionately benefit one individual over others.”

Related Article: Possible Ways to Invalidate Changes to Trusts?

2. Exertion of Undue Influence

Inheritance theft is often tied to undue influence, where an individual pressures or manipulates a person who is not of sound mind into changing their will or trust in favor of the influencer. 

The target of undue influence is usually someone particularly vulnerable, such as an elderly person, someone with mental health issues, someone with substance abuse issues, or a person suffering from dementia.

“Undue influence can take many forms,” said Porrazzo, “whether it’s isolating the decedent from other family members, making them feel guilty, or using flattery to create dependency. If you notice these behaviors, it’s important to assess whether inheritance theft has taken place.”

Related Article: California Probate Law: Defining Incapacity of Grantor

3. Family Members or Caregivers with Unusual Access to the Estate

Another one of the many signs of inheritance theft is when certain individuals, such as caregivers or family members, have unusually high access to the decedent’s financial records, belongings, or health care decisions, especially if they have a history of questionable behavior. 

In some cases, this can pave the way for theft or manipulation of the decedent’s estate. A common method of gaining such unrestricted access is abusing a power of attorney designation. Another common situation is when a caregiver suspiciously stands to inherit a sizable portion of the estate. 

In these situations, it’s important to know that there is a presumption of undue influence, meaning that the law is on your side if a caregiver has abused their position. 

Related Article: Caregiver Inheritance Laws: What Can I Do When a Caregiver is a Beneficiary?

4. Sudden Gifts or Loans

Inheritance theft can also involve suspicious gifts or loans made just before or after a person’s death. Large sums of money or valuable property transferred to a particular individual, especially if these transfers are inconsistent with the decedent’s usual behavior, could indicate financial exploitation.

5. Discrepancies in Estate Planning Documents

If there are inconsistencies between the various estate planning documents, such as the will, trust, and beneficiary designations, it may point to interference, tampering, or even forgery. 

Even if the documents appear legitimate, discrepancies between what was intended and what is stated could suggest foul play.

Related Article: How Does a Will Work with a Trust When They Conflict?

6. Missing or Relocated Assets

Family heirlooms, artwork, jewelry, or other valuables disappearing while a loved one is still alive or immediately after their passing are some of the most common signs of inheritance theft. Similarly, watch for discrepancies in property records.

Related Article: What is Probate Fraud?

7. Isolation and Limited Access

Be wary if a family member or caregiver begins restricting access to your loved one, especially during estate planning and in their final days or weeks. If a family member or caregiver is suddenly in a position to inherit an inordinate amount from the estate, this isolation could be a sign that they exerted undue influence to receive a larger share of the estate.

8. Unusual Financial Activity

Large cash withdrawals, transfers to unknown accounts, new credit cards, new bank accounts, or sudden changes in spending patterns around the time of the decedent’s death may indicate someone is taking advantage of a vulnerable individual’s finances.

9. Lack of Transparency

If the person responsible for administering the estate, whether it’s an executor or trustee, withholds information about the estate’s financial state or refuses to share accounting records, this could be cause for concern because it may signal they are hiding something. 

Related Article: Does a Beneficiary Have a Right to See Trust Financial Statements?

10. “Surprise” Debts

The sudden emergence of debts previously unknown to family members could be a sign of a tactic to deplete the estate’s assets by a bad actor. 

11. Different Versions of the Will or Trust

If multiple copies of the will or trust are floating around with conflicting instructions, this is suspicious, to say the least. This could indicate a range of things, from tampering to forgery, and it’s often a situation that demands immediate legal attention. 

Related Article: Shocked By a Suspicious Will? How to Prove a Will is Fake in California

How to Protect Your Loved One’s Estate When You Detect Signs of Inheritance Theft

If you suspect inheritance theft, document everything. Maintaining a paper trail is one of the most crucial steps to take if you have started noticing signs of inheritance theft. Keep copies of financial statements, correspondence, and any other evidence of unusual activity. 

Most importantly, don’t wait to seek legal counsel and take action. The courts have mechanisms to freeze assets and investigate suspected fraud, but time is critical. Remember inheritance theft isn’t just about money; it’s about honoring your loved one’s true wishes and protecting their legacy. 

While family conflicts over inheritance can be emotionally challenging, allowing theft to go unchallenged does a disservice to the deceased and can damage family relationships for generations.

Early intervention is key. If you notice any of these warning signs, consulting with an experienced trust and probate litigation attorney can help you understand your rights and the best course of action to protect your family’s inheritance.

Keep in mind that, in California, you have a limited amount of time to challenge a will or trust, generally 120 days. If you suspect a breach of fiduciary duty, meaning the perpetrator is the executor or trustee, the statute of limitations is generally 3 to 4 years. In either circumstance, however, when the clock starts ticking is dependent on your specific case, which is why it is imperative to seek the advice of an attorney as soon as possible to evaluate your claims.

If you suspect inheritance theft has occurred or are worried about a loved one’s estate being targeted, there are steps you can take to protect it:

1. Consult with a probate attorney immediately to assess any changes in the will or trust documents and navigate the complexities of probate or trust law.
2. Look for patterns of undue influence by examining the decedent’s relationships and interactions with individuals close to them.
3. Gather documentation that shows discrepancies, unusual behavior, or fraudulent activity related to the estate. This supporting evidence could include wills, trusts, bank statements, credit card bills, financial records, or even correspondence.
4. Gather witness statements, which can be written accounts from people who observed suspicious behavior or heard incriminating conversations. Expert witness opinions are also crucial, whether you work with forensic accountants, handwriting experts, or the decedent’s physician, who can attest to their declining mental faculties. 
5. Obtain medical records if you’re claiming that the deceased lacked mental capacity. In these situations, documentation of their health status could be vital. 
6. Document the timeline of events and create a detailed chronology of important events before and after the death of the decedent. 

Still, this process is complicated and often emotionally and mentally taxing, especially when you’re already dealing with the loss of a loved one. 

An attorney will have the expertise, network, and resources to build a strong case, gather witness statements and necessary expert witness testimony, and obtain necessary documentation and medical records. All you will have to do is focus on healing and moving past this emotional chapter.

“Every case is unique, but there are certain patterns we can look for to identify inheritance theft,” said Porrazzo. “Still, time is of the essence in these situations. The sooner you can get help from an experienced probate attorney, the better your chances of recovering the estate, reversing damage, and securing your loved one’s legacy.”

Related Article: When to Get a Will Contest and Trust Fraud Attorney in California

Don’t Wait—Protect the Estate Today as Soon as You See Signs of Inheritance Theft.

Inheritance theft can cause lasting emotional and financial harm to families already grieving the loss of a loved one. By staying vigilant and recognizing the signs of inheritance theft early, you can take steps to prevent or contest inheritance theft. Working with a trusted probate and trust litigation attorney is key to ensuring that the rightful beneficiaries inherit what was intended.

If you suspect inheritance theft or need to challenge a will or trust, contact the experienced attorneys at Gokal Law Group to schedule a consultation. We will protect your family’s future.

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