Every time an estate enters probate, legacy and financial security are at stake for beneficiaries. And when an executor abuses their position for their gain, this can have consequences that ripple across generations. Typically, when an executor uses nefarious means to benefit from an estate at the expense of the beneficiaries or a beneficiary uses underhanded tactics to benefit from an estate at the expense of other beneficiaries, this is considered probate fraud.
At Gokal Law Group, we have helped countless beneficiaries enforce their probate rights, and we have successfully recovered millions of dollars in settlements and trial verdicts for clients when there has been foul play. Here’s what you need to know about estate fraud.
What is Probate Fraud?
Probate fraud, also called estate fraud or executor fraud, occurs when the executor fails to fulfill key fiduciary duties. At its most rudimentary level, this type of fraud involves the theft of assets and the clear intent to deceive to benefit one party.
An executor has a fiduciary duty to invest and/or distribute estate assets solely in the interest of the beneficiaries impartially. They also have a duty to provide complete and accurate information about how they are managing assets in an accounting, including all transactions, income earned, and expenditures.
Failure to fulfill these duties and misusing money or accounts held by an estate could constitute fraud. Sometimes, there are rational explanations for odd accounting measures or unexpected changes in holdings. However, estate fraud can occur before the estate even enters probate.
For example, maybe a beneficiary used undue influence to manipulate the person who created the will to amend it and give them a larger share when they were in a vulnerable state. Or perhaps they outright forged a document or signature. These acts also constitute estate fraud.
Related Article: What Constitutes Fraud in a Will and Trust?
How Can You Identify Probate Fraud?
One of the easiest ways to identify probate fraud is by asking yourself whether this action exclusively benefited the executor or another beneficiary at the expense of other parties to the estate. If it did, you are likely dealing with estate fraud. Other common red flags include:
- Changes to a will or power of attorney when the will creator’s death was imminent.
- A will not drafted by an attorney or signed in the presence of an attorney or notary.
- The execution of multiple wills.
- The inexplicable exclusion of a spouse or child from the will.
- The destruction of the single known copy of the will, leading to intestate succession and the reinstatement of a disinherited party.
- A will that does not accurately reflect the decedent’s estate.
- Known or anticipated holdings of the estate that are inexplicably missing.
- Changes in the beneficiary designation on insurance or inheritable accounts to the benefit of a family friend, caretaker, or financial advisor.
- Substantial gifts made just before the decedent’s passing.
- Assets removed from the estate through the power of attorney.
- The executor’s delay or failure to execute estate administration filings, which may be to cover up the manipulation of assets.
- The executor’s failure to provide a proper and comprehensive accounting.
Related Article: An Overview of Probate Beneficiary Rights
What Are Examples of Probate Fraud?
To better understand probate fraud, we will get into common examples of this type of fraud that we have seen as a law firm. Some common examples of estate and executor fraud include:
- Self-dealing (i.e., the sale or purchase of assets that specifically benefit the executor).
- Commingling estate assets with those of the executor.
- Losses to the estate as a result of the executor’s wrongful acts or omissions.
- Fabricating a will document or forging a signature.
- Hiding or suppressing the latest version of the will for their benefit.
- A beneficiary manipulating the creator of the will who lacks the capacity to make such decisions in an effort to amend it in their favor.
- A party contacting the estate administrator or a beneficiary falsely claiming that the deceased owed them money (a typical scam).
- A beneficiary lying to get more assets or money from the estate; for example, this could be a sibling telling the person who created the will that another beneficiary does not care about them because they don’t call or visit.
- Removing assets from the estate without permission or notification.
“Probate fraud can take countless forms, which makes identifying it difficult without considerable knowledge of probate law. As soon as you suspect there has been foul play, it is essential to contact an attorney and prepare for probate litigation to preserve the integrity of the estate and defend your inheritance.”
– Alison S. Gokal, Partner, Gokal Law Group
Related Article: What Are the Grounds for Contesting a Will in California?
Do You Suspect that an Executor is Committing Probate Fraud? Schedule a Consultation Today to Defend Your Inheritance!
As soon as you suspect any form of probate fraud, working with a premier probate attorney in California is crucial. Failing to act quickly jeopardizes your inheritance. We have successfully helped countless beneficiaries recover millions of dollars and held beneficiaries and executors accountable for their actions in court. We will take the time to learn about your case, review the will and other documents filed as part of probate and subpoena records, and, if necessary, enlist the assistance of certified forensic accountants and other experts to follow the money.
Visit our Contact Page to schedule a consultation to secure your inheritance and hold an executor with ill intentions accountable for damages.
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