We are not a law firm, or a substitute for an attorney or law firm. If you refuse to act as executor: Another executor named in the will can take on all the duties. Removing the Executor Who Steals from the Estate. Thus, for example, if the executor has a $100,000 bond but you can prove that $125,000 was stolen, your compensation will be limited to $100,000. Make copies of all the evidence. Stealing estate assets is a clear violation of this duty. An executor's many responsibilities require him to have access to the estate's funds, which sometimes can prove too much of a temptation for someone inclined to dishonesty. If they become concerned that the executor is taking money from the will, they need to act quickly in order to preserve their inheritance. Estate Planning and Asset Protection Toolbox. The policyholder can designate percentages of the money that should go to each beneficiary. Additionally, you can request that the executor be removed, prohibited from taking any more assets from the estate, and prohibited from using funds that have already been misappropriated. If the executor was required to obtain a bond, the bond’s surety may have to pay the surcharge. Sometimes they do work and scare/move the errant executor into more sensible actions..... Option 2 - Propose Mediation. In addition to stealing from the estate, other types of executor misconduct include favoring one beneficiary over another, poor asset management and failing to provide a beneficiary with documentation that he or she has a legal right to receive, to name a few. You might also notice checks made out to the executor, but this doesn’t necessarily mean she’s stealing from the estate. Get the right guidance with an attorney by your side. However, it’s possible to hire an executor who will be paid from your estate, and, in fact, lawyers will often perform executor services. The content is not legal advice. Things Your Executor Can Do. What can I do if the executor stole everything before the testator passed? Therefore, the person chosen to act as an estate’s executor should be someone trustworthy, responsible and in good financial standing. The information contained in this web site is provided only as general information which may or may not reflect the most current legal developments. Decide if you want a criminal prosecution or a civil prosecution. This portion of the site is for informational purposes only. He has control of the assets and can simply transfer them over to himself and spend it or hide it. For example, if the executor stole or failed to protect the assets from the estate, you can bring a lawsuit that demands that the executor pay back the estate for the losses. Step 3. An executor can delay payments to beneficiaries to pay taxes and debts on the estate. For example, if a beneficiary believes that the Executor is stealing funds from the estate, he can prepare and file a Petition to Revoke and Appoint. These materials have been prepared by Jeffrey M. Verdon Law Group, LLP, for informational purposes only and are not legal advice. Ask a lawyer - it's free! If you suspect theft from an estate, you may hire a forensic accountant … You can ask for an accounting to track where the money is going, you can bring legal action against him to recover stolen assets, and, if the executor has posted a bond, you can make a claim against it. Enormous obligations are cast upon an executor to gather in the estate, pay all testamentary debts and expenses and to distribute the estate in a correct and legal way. Option 1 - Write a Warning Letter. It does take time to administer an estate. Know, however, that the police may not be responsive to allegations of executor theft, believing the issue to be a family dispute that can be difficult to prove. As a beneficiary, you have the right to file a lawsuit against the executor based on your claim to the funds and property held by the estate. For example, the court can order the financial institution that is holding the estate’s assets to restrict the account and prohibit the withdrawal of funds without a court order. Be prepared to escalate quickly, however, as this confrontation may just alert the executor that he needs to accelerate his efforts to siphon off the money. I nearly signed away my right as executor as she wanted to do the probate herself, to save us money. Beneficiaries should expect to receive regular updates that document how the executor is handling the estate plan. However, an executor can’t steal from the estate, refuse to communicate with beneficiaries, or needlessly delay payments. How to Prosecute Someone for Stealing From Probate Step 1. My sister and I are the only beneficiaries of the … In response, he is required to provide you with documentation of all the estate assets, income, and expenses, including bank statements, receipts, and other supporting materials. When Executor of Will Steals Money If the executor of the will steals the money or refuses to distribute it according to the terms of the Will, the beneficiary runs the risk of … Taking more than you are entitled to by law can be interpreted as stealing from the other beneficiaries of the estate. Executors for CA estates are entitled to compensation and fees ranging from 0.5% to 4% of gross estate value: use the EstateExec compensation calculator. If your suspicions are correct and the executor is stealing from the estate, the executor may face several consequences such as being removed as executor, being ordered by the court to repay all of the stolen funds to the estate, and/or being ordered by the court to return any stolen property to the estate. Terms of Use and Thereafter, you can file a lawsuit against the former executor to recover stolen assets. This crime can take many forms. Filing a Lawsuit Against the Executor If you can show that you’ve suffered financially from the executor's actions (or inactions), you can sue the executor. The trustee is charged with managing and protecting these assets until they are distributed to … The simple answer is, we try to get the money back. This information is not provided in the course of an attorney-client relationship and is not intended to constitute legal advice or to substitute for obtaining legal advice from an attorney licensed in your state. In addition to these concrete tasks, the executor owes the deceased and her beneficiaries a fiduciary duty to act in good faith at all times and for the benefit of the estate and its beneficiaries. Being an executor can be a very onerous and difficult task indeed. What if the executor of the estate steals money from the beneficiaies. After a person dies, their executor will be performing a variety of legal functions, including selling property, paying creditors, bringing any lawsuits that need to be filed, and, if necessary, reviewing medical records and distributing assets to their named beneficiaries. Beneficiaries of an estate must move quickly it they are convinced that the estate’s executor is stealing. You face many serious responsibilities, with personal liability for your mistakes as a possible consequence. State laws set a time limit in which an heir may take action against an estate executor. If you are concerned an estate administrator or guardian may potentially steal assets, ensure the Court sets an appropriately high … An untrustworthy executor is in a position where they could embezzle funds after your death. However, being an executor can be a time-consuming job that can … Whatever you do, you should act quickly. Most people name their spouse, a close friend, or family member as their executor. Get a copy of the will and other documents filed with the probate court. As soon as theft is suspected, have your lawyer issue a demand letter asking for an account of the executor’s financial transactions with regard to the estate. You can sue but this will be expensive and if you get a judgement you still have to collect. Use of our products and services are governed by our How Trustees Steal From Trusts During Trust Administration One of the primary purposes for creating a trust is to ensure that a person’s assets are well taken care of after he or she passes away. If that doesn’t generate the desired result, you can try mediation before going in front of the court. Sometimes it happens -- a beneficiary steals money or assets from an estate before the estate is distributed to heirs. You can file criminal charges in addition to civil charges against the executor from the estate provided that you have enough proof of a crime taking place. Require a bond. Jeffrey M. Verdon Law Group, LLP • 1201 Dove Street, Suite 400 • Newport Beach, CA 92660 • 949-333-8152Redwood City Office - 303 Twin Dolphin Drive, 6th Floor • Redwood City, CA 94065. You can also hire an estate planning attorney for assistance. Unfortunately, that person may end up not being as honorable as the decedent thought. Acting as an executor is an important job. But you don't have to manage it all alone. Each state has laws defining the rights of beneficiaries. If, however, the accounting is incomplete or suspect, you can petition the court to remove the executor and appoint a new one. The longer the beneficiaries wait to act against the executor in question, the less likely they’ll be able to recover stolen funds and/or possessions. A beneficiary has the right to notification of probate court actions, to view the original will, and to ask the estate’s executor for information and documentation as it relates to the estate’s assets. There are a number of remedies available to force your sibling to return the money. The longer the beneficiaries wait to act against the executor in question, the less likely they’ll be able to recover stolen funds and/or possessions. At this stage the executor usually files for bankruptcy so you are just SOL. The extent to which you can recoup the estate's losses, however, is limited by the executor's resources, so it's important to act quickly before the estate's funds are all spent. An online service provider can guide you through the process. What if I am named as an executor and don’t want to do it? The executor must protect all assets. For example, a California estate with a gross value of $1M would generate $23K in executor fees. Submitting the will to the court for probate, Setting up a separate bank account for the estate, Locating, inventorying, and appraising the estate assets, Notifying creditors of the deceased's passing, Paying the deceased's debts, including funeral expenses and final taxes, Keeping an accurate accounting of all income and expenses, Distributing assets according to the will. You can start by confronting the executor to demand an explanation for questionable transactions or the sudden disappearance of funds. This means it is necessary to ensure that all estate assets are protected from loss, theft, damage, or waste. But an executor’s authority isn’t endless. In addition to stealing from the estate, other. A bond is insurance for the estate that protects the estate from any breach of duty by the executor. Estate administration Executor of will Probate Non-probate assets. Our network attorneys have an average customer rating of 4.8 out of 5 stars. What Happens When a Beneficiary of an Irrevocable Trust Receives Money? Beneficiaries of an estate must move quickly it they are convinced that the estate’s executor is stealing. She’s entitled to make a claim to the estate for reimbursement if she spends her own personal money on estate-related expenses for things like postage, copying or even travel costs. (Indeed, you may be grieving as well.) When an Executor is Issued with a Grant of Probate, they will have sworn an Oath or Statement of Truth, confirming that they will administer the estate in accordance with the law.. State laws set a time limit in which an heir may take action against an estate executor. If you’ve been named an executor, a couple basic rules of thumb are that you can’t do anything that disregards the provisions in the will, and you can… My sister and executor of my father, whose name was on all bank accounts, stole all of the money before my father passed so that there is nothing left for the other siblings. If you are named in the will and do not want to act, you do not have to accept the responsibility. A person with an interest in the estate can petition to have an Executor removed if there are good grounds to do so. The executor pays a premium for the insurer to cover losses caused by his conduct. Thank you for subscribing to our newsletter! Filing a civil lawsuit takes time, but you should be able to appear before the probate court to request an injunction which can limit the damage that the executor can do while your case is being decided. The longer you wait to take action against a thieving executor, the less likely you'll be able to recover stolen funds or possessions. An executor or anyone else improperly taking money from an estate can be subject to criminal prosecution for theft from the estate, even if they are one of the beneficiaries. Where an executor refuses to return the money, we sue the executor and execute his property in favor of the estate. include favoring one beneficiary over another, poor asset management and failing to provide a beneficiary with documentation that he or she has a legal right to receive, to name a few. If you suspect that the executor is stealing money from the estate, you or your attorney should send him a letter demanding an accounting. A beneficiary has several ways to take action against a thieving executor. Question Details: My sister and executor of my father, whose name was on all bank accounts, stole all of the money before my father passed so that there is nothing left for the other siblings. We’ve already covered the steps an executor would need to take to carry out a Will in a previous post, but have listed the general tasks below. Finally, in cases where the theft is particularly egregious or well-documented, you may wish to contact the police. Beneficiaries h… But that will not get the money back. Even though you have a right to recover from the executor, if the money is spent, he may not have the resources to repay you. Another option is to order the executor to place the funds in a restricted account and to provide proof that such action was taken. Show 1 more Show 1 less . Privacy Policy. Since the executor is acting as a fiduciary, it is important that there is no appearance of wrongdoing. Time. When an executor is dishonest Executors of an estate have an obligation to engage in the due administration of the estate. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law. Because a degree of the human element is involved, problems of course arise when executors do not do what they are supposed to do. Notifying creditors of the deceased's passing. Setting up a separate bank account for the estate. Feel free to contact us for a referral to an experienced probate attorney to help you determine whether you have a case or not. In some states, to recover on the bond you must file a lawsuit, sometimes known as a surcharge action, against both the insurer and the executor. If a guardian or executor is stealing from an estate, or misuses estate money, a lawsuit called a Surcharge Action can be filed. Unless your sister is cooperative, you will need to seek resolution through the courts and legal system. An executor's duties include: Submitting the will to the court for probate. You can also request that the probate court add restrictions against the account. “To do otherwise puts the executor is a very tenable legal position,” he adds. A deceitful beneficiary might "borrow" from the estate with no intention of returning the funds. Internet subscribers and online readers should not act upon this information without seeking professional counsel. When an executor for a will is selected, they agrees to act in the best interest of the estate and to follow through with the decedent’s wishes when it comes to the beneficiaries. The executor is the person appointed in a deceased person's will to manage her estate and distribute assets to the will's beneficiaries. Locating, inventorying, and appraising the estate assets. What Happens When the Executor of the Will Steals the Money? A solicitors' letter or one from you can have the desired impact. i have proof that someone took money out of the estate and did not distribute it equally among the other beneficiaries what can i do. If no other executor is named, you can apply to the court to appoint an administrator. He passed away 2 years ago and none of us have heard anything from her about a will, any assets, nothing. What can I do if I don’t want to go give my brother who is the executor my address nor do the grand children want to as it has been a real problem with him so … More . Step 2. This could include value appraisals, asset sales contracts and an inventory of property. The vast majority of executors are lay family members, not professionals such as accountants, lawyers or trustee organisations. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship. If you suspect that the executor is stealing or otherwise not properly fulfilling his duties, you can request that he obtain a bond. Some people may feel guilty about taking money for serving as the executor of a will. Hire a Forensic Accountant. What can I do when executor steals everything before the person passes? If this does not work, sometimes the carrot of mediation can have the desired impact. As a beneficiary, you can turn to the insurer to repay the executor's theft up to the bond amount. © LegalZoom.com, Inc. All rights reserved. If you suspect an executor is acting dishonestly, seek legal advice from a Specialist in Succession Law as soon as possible. If there’s nothing left after that or the liabilities of the estate exceed the assets, the beneficiaries won’t receive an inheritance. What steps can beneficiaries take if they become concerned that the executor is stealing from the estate in question? Attorneys with you, every step of the way. Some states require an executor to post a bond upon appointment, which acts as insurance for the estate from losses he may cause. If you are a beneficiary and are having difficulties with an unhelpful executor, what are the key factors and what can you do ?. The executor must also ensure that all … There are limits on what an executor can and cannot do. Yes the executor can steal all of the money. If you have been appointed the executor in someone's will, the task can seem daunting. This is understandable, as the people you’ll be working with will undoubtedly be grieving. 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