Estate administration fraud is a significant problem for families in Orange County and throughout California. The easiest way to prevent fraud is to be proactive. This kind of forward-thinking can help protect your estate from potential fraudsters and keep your assets safe for your beneficiaries.
The Orange County, CA, estate creation lawyers at OC Wills & Trust Attorneys can help you avoid fraud by utilizing our vast knowledge and extensive experience creating trusts to be fraud-resistant. This guide from OC Wills & Trust Attorneys offers insight into how fraud can occur and how to best position yourself to avoid it.
Examples of Estate Administration Fraud
Estate administration fraud occurs when someone takes advantage of the process of distributing assets after a person’s death for personal gain. Knowing how fraud can happen helps protect an estate and its rightful heirs. Some common examples of estate administration fraud include:
- Forgery of documents: Someone might forge the deceased’s signature on a will, trust, or other legal document to alter the distribution of assets. This type of fraud can also include creating a new will that favors the forger or changes beneficiary designations.
- Embezzling estate funds: The executor of an estate or a trustee overseeing a trust usually has access to estate assets like bank accounts or investments. In cases of fraud, they might withdraw money or transfer assets for their personal use instead of distributing them according to the will or trust.
- Misrepresenting or hiding assets: Fraud can occur when someone deliberately hides valuable estate assets, such as property or financial accounts, from heirs and the courts. By misrepresenting the total value of the estate, the person committing the fraud can keep more assets for themselves.
- Improper accounting: California law requires executors or trustees to keep detailed records of estate transactions. Fraud can occur if an executor or trustee falsifies these records to conceal theft or mismanagement of estate funds.
Strategies to Prevent Estate Administration Fraud
The best offense is a good defense, so creating your trust in a way that is difficult to defraud can save a lot of stress and worry for both you and your beneficiaries. Some key strategies you can implement to deter estate administration fraud include:
- Appoint a trustworthy executor: Select an executor who has a strong reputation for integrity and responsibility. This person will oversee the distribution of your assets, so their honesty is key.
- Involve a third-party auditor: Hiring an independent auditor can provide an unbiased review of the estate’s financial activity, offering an additional safeguard against fraudulent behavior.
- Maintain open communication with beneficiaries: Keeping everyone informed about their inheritance and the estate’s status reduces the chances of deception or fraud going unnoticed.
- Set up a trust: Consider establishing a trust to manage your assets. Trusts allow for greater control and specific instructions on how and when assets are distributed, reducing the likelihood of fraudulent activity.
- Work with an experienced law firm: Collaborating with an estate creation firm like OC Wills & Trust Attorneys can provide added protection. A California estate creation attorney can oversee the process to position you to be less susceptible to fraud when it comes time for your trust to be administered.
Prevention is the Best Defense Against Estate Fraud
Preventing fraud starts with building a solid, secure estate plan. By taking proactive steps during trust creation, you can safeguard your assets and protect your legacy from potential threats. Working with a trusted legal team ensures that every detail of your estate plan is designed with security in mind. OC Wills & Trust Attorneys is here to help you create a fraud-resistant estate plan tailored to your unique goals and priorities so you can have confidence in the future you’re building for your loved ones. Contact us today to start safeguarding your future.
