When someone passes away, their will specifies how to distribute their assets. In California, the person in charge of this is called the executor. Although most executors follow the deceased’s wishes ethically, some commit fraud, causing significant issues and distress for the heirs.
What is executor fraud?
Executor fraud occurs when the executor does something illegal or unethical that goes against their duty to act in the best interest of the heirs. This includes ignoring the will’s instructions or doing anything that benefits them at the heirs’ expense.
Types of executor fraud
Executor fraud can take many shapes and forms. But there are a few common types that courts see time and time again.
- Stealing assets: using the estate’s money for personal benefit or giving property to people not named in the will.
- Hiding information: executors must keep heirs updated about the estate. Withholding information to manipulate outcomes is fraud.
- Overcharging: executors can get paid for their work, but charging too much or for tasks they didn’t perform is fraudulent.
Protecting against executor fraud in California
California law has rules to prevent executor fraud. For example, executors must keep detailed records and regularly report to the court and heirs.
Moreover, heirs can ask for more court supervision if they suspect fraud. Last but not least, heirs can request the court to remove a fraudulent executor and to take action to rectify any damages caused.
Preventing executor fraud
It’s vital to choose a trustworthy executor who is capable of managing an estate’s legal and financial duties. Sometimes, appointing a neutral third party as the executor helps avoid conflicts of interest and reduces fraud risks.
Understanding and preventing executor fraud is essential for anyone involved in an estate. Staying informed and vigilant helps ensure the estate is managed fairly and respects the deceased’s intentions.
