What Can I Do About a Sibling Who Is Stealing from the Estate?
When a parent dies, even if you are an adult, it is a difficult time. But suppose your adult sister moved in with your mother shortly before her death. You now find out that during the time your sister lived with your mother, she convinced her to change her will, naming your sister as the executor. Your sister has had her share of financial troubles over the years, with your mother constantly bailing her out.
Now, you believe your sister is using her position as executor to steal from the estate. What should you do? This is a situation that needs to be addressed quickly by speaking to a probate/estate administration attorney. Choosing an experienced Los Angeles, CA estate planning attorney can make a significant difference in the outcome of a situation like this.
What is Executor Fraud?
An estate executor has a fiduciary duty to manage and distribute the estate for the benefit of the beneficiaries of the estate. Unfortunately, some estate executors may mismanage the estate they are charged with protecting. Executor fraud occurs when the executor of an estate engages in unscrupulous activities, and the state of California will remove an executor when it is shown that he or she has:
- Engaged in the theft of physical property like jewelry, art, antiques, or other personal belongings
- Accessed online accounts to transfer stocks, bonds, or cryptocurrencies directly to the executor
- Withheld inheritances of others
- Hidden or omitted estate assets
- Lied about estate assets
- Misappropriated finances, including withdrawing bank funds for the executor’s personal use
- Falsified liabilities
- Forged or altered documents for personal gain
- Charged the estate inflated executor fees
- Sold estate assets at below market value to a friend or relative
- Underpaid a beneficiary of the will or trust
- Failed to act or acted negligently
- Is unqualified or incapable of executing the duties of the executor
What Are Some of the Primary Signs of Executor Theft or Fraud?
While it can be very difficult to find out that a sibling is stealing from a parent’s estate, the issue needs to be identified early to minimize the harm to the estate. Any unexplained financial activity in the estate, including evidence that the sibling/executor is using estate funds for his or her own benefit, should be an immediate red flag.
While as executor the sibling will be given access to the decedent’s assets, including bank accounts, money is only to be spent paying the decedent’s legitimate expenses or other allowable expenses. Secretive behavior, delays in probate administration, refusal to share information, access denial to financial documents, or other shady behaviors are all cause for concern.
Addressing Sibling/Executor Mismanagement, Theft, or Fraud
It is perfectly normal to be angry and frustrated when dealing with an untrustworthy sibling/executor. The first step to stopping these behaviors involves contacting an estate attorney as soon as possible. Demand an inventory and accounting of the probate estate or trust assets from the sibling or executor.
Work closely with the attorney by providing all information and evidence of fraud, theft, or mismanagement. When an executor fails to provide proper accounting or assets go missing, other beneficiaries can ask for detailed accounting and potentially file a civil lawsuit against the executor.
The probate court may also decide that the executor must be removed. The process can be lengthy and may involve investigations and court processes, yet protecting the decedent's wishes should always be the primary goal.
Contact an L.A. County, CA Probate/Estate Administration Lawyer
If you believe your sibling not only fraudulently had herself or himself named as an executor but is now engaging in theft of the estate, the sooner you contact an experienced estate attorney, the better. A Los Angeles, CA probate/estate administration attorney from Law Office of David Schechet can ensure that everything having to do with your parent’s estate is legitimate. Attorney Schechet has more than 35 years of experience and will look for ways to resolve disputes early on to avoid bigger problems later. Call 800-282-4731 to schedule a free consultation.