Executors play an integral role in administering an estate and distributing inheritance to beneficiaries. As such, they have a tremendous amount of power and influence over the funds and assets an estate holds. However, some executors cannot resist temptation and abuse their position for their own gain in what is considered executor fraud. If you suspect such fraud has occurred, it could compromise your inheritance, the integrity of the estate, and the legacy of the person who left it behind. So, acting quickly and contacting an attorney is of the utmost importance.
At Gokal Law Group, we have helped countless beneficiaries enforce their rights when executors exploit their power over the estate and its beneficiaries. We have successfully recovered millions of dollars in settlements and trial verdicts for clients. Learn more about this type of fraud.
What is Executor Fraud?
Unfortunately, some executors intentionally mismanage or outright steal the assets and finances from the estate they are administering. If an executor engages in this behavior, you are dealing with executor fraud. Common examples include:
- Withholding inheritances from rightful beneficiaries.
- Paying themselves unreasonable expenses or advances from the estate.
- Lying about or concealing estate assets.
- Failing to notify beneficiaries.
- Falsifying liabilities.
- Creating fake creditors to withdraw money from the estate.
- Charging inflated fees.
- Selling assets for less than market value.
- Delaying estate administration because they are living in the house.
Essentially, executor fraud occurs when an executor unlawfully obtains assets, money, or another illegal benefit from managing the estate.
Related Article: An Overview of Probate Beneficiary Rights
Does an Executor Have to Show Accounting to Beneficiaries?
Under California law, executors of a will submitted with the probate court must file an accounting of all transactions they have conducted while administering the estate. This document provides a window into their process and essential transparency. Ultimately, this accounting is a form of protection for beneficiaries.
After completing the estate administration, the executor must also file an accounting with the probate court summarizing all estate-related financial activity since the start of the probate process.
The accounting must be comprehensive, and the executor must maintain records that support each estate transaction. When beneficiaries ask to go over the transactions, they must be ready to supply them. An accounting must include:
- The initial inventory of the estate property.
- The value of all assets received by the estate during the accounting period.
- The net business income and losses of the estate.
- Sales gains and losses of the estate.
- The amount of disbursements, including distributions to the beneficiaries.
If an executor fails to provide proper accounting and supporting documents, beneficiaries have the right to petition the court for another accounting. The court will then compel the executor to provide a detailed accounting of all assets that have moved in and out of the estate.
Failing to provide an accounting is a sign that the executor may be hiding something, and this is where you will likely find the first signs of executor fraud.
Related Article: What Are Grounds for Contesting a Will in California?
What Should You Do if You Suspect Executor Fraud?
If you suspect that a fiduciary has committed executor fraud, then it is crucial to contact an estate litigation lawyer as soon as possible and gather evidence of this offense. Your attorney will assess your case and determine the best course of action to protect your inheritance.
In California, beneficiaries can sue the executor personally if they have suffered a loss as a result of misconduct. If found guilty following probate litigation, the court can not only remove the executor but also force them to pay monetary damages in penalties and to restore the estate.
If the case is severe enough, you could also pursue criminal charges.
“The average person lacks the experience and expertise to uncover this transgression, build a case, and present it in court. As soon as you suspect executor fraud, you need to contact a probate lawyer. An experienced attorney will have the keen eye necessary to detect fraud and determine the most advisable legal recourse for you. An attorney will also have important resources and connections, like access to digital forensics experts and medical professionals to provide witness testimony.”
– Ronald V. Larson, Partner, Gokal Law Group
Related Article: What is the Success Rate of Contesting a Will in California?
Have You Been the Victim of Executor Fraud? Schedule a Consultation to Safeguard Your Inheritance and Hold Them Accountable
When someone commits executor fraud, this can feel like a huge betrayal for beneficiaries like you. In the wake of a loved one passing, this only compounds the emotional stress and turmoil you are likely feeling. You deserve to work with probate litigation attorneys who understand the situation you are in as soon as you step through the door. We will handle all the legal action necessary to hold them accountable so you can reach a place of closure.
Visit our Contact Page to schedule a consultation to work with seasoned estate litigation lawyers.
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