Blended Families Are Most Likely to Fight

     Contested probate cases often involve a second or subsequent marriage.  About 90% are cases between a surviving spouse and a deceased spouse’s family. In some of the worst scenarios, one party will commit a form of inheritance theft. This can be with small meaningful items, or even siphoning money itself from an estate before the probate process takes place.  The more disagreement there is between the family; the more likely inheritance fraud is to occur. 

How Family Members Hijack an Inheritance

     Stealing from a family member’s estate can happen even before the person has passed away. Some family members may have access to money or property and take it.  This can occur when kids are joint owners of financial accounts with parents or a bad actor gets power of attorney.  There are also some more complicated methods:

• Undocumented Loans:   Loaning money to a relative with a verbal promise that they will pay it back. After you pass away, there is no legal way to collect the money that the relative has borrowed. Use loan documents when lending out money to ensure repayment – even informal and handwritten agreements can get you a  long way.
• Denigration of Fellow Heirs– Family members can speak badly of another relative to get their inheritance shortened or removed. This sneaky trick often goes undetected by the targeted relative until after their loved one has passed.  
• Forging or Destroying Documents– Falsifying documents is illegal as well as immoral. If an heir destroys a will or creates a new one, these claims should be investigated.

How to Avoid Feuds and Other Troubles
     
     Having a comprehensive estate plan that includes a Trust, POA and a Pour Over Will greatly helps to distribute your assets according to your wishes.  It’s especially important to have these documents properly implemented and your trust fully funded.  

Protecting Your Estate from Inheritance Theft

     If you have any doubts, it may be best to appoint more than one executor.   Along with a trusted relative, you can appoint an outsider such as a CPA, financial institution or attorney. They will keep everything going right when it comes to the administration of your estate. It’s best to share these plans with your entire family. This will make it less likely for a family member to try to pull something once you are gone. It may not be easy, but it’s a crucial conversation you’ll want to have.

     The best way to protect yourself and your assets is to consult your local elder law attorney. They will make sure that you have the best protection for you and your family’s future.