Penalty For Stealing From An Estate And Before Inventory (2024)

by Hess Verdon | Oct 10, 2023

What is the punishment for taking money from a deceased person’s account?

What is the punishment for taking money from a deceased person’s account? We can go straight to the bottom line and state it can be a criminal offense for stealing from an estate. In simple terms, it’s called family trust embezzlement. Most times, however, civil litigation is typically the remedy. Before explaining the ways an Executor, Trustee, or even a Beneficiary can steal from an estate and the penalty of theft, let’s go over the full breadth of the administration process to see where things can go wrong.

Penalty for stealing from an estate in California

In California, theft from an estate can lead to multiple penalties. Initially, one may simply be required to return the stolen assets. However, the California Probate Code, in severe cases, establishes grounds for not only seeking double but even triple damages.

Can an executor be charged criminally?

An executor holds a fiduciary duty to manage the estate properly. If they neglect to probate the will and wrongfully claim ownership, especially when being the sole family, they risk facing criminal charges. Such actions are considered fraudulent, and the law can hold executors accountable for such misconduct.

Theft from the Estate Before Inventory

Many inheritance theft cases involve theft from the estate before inventory. The executor confiscates or fails to report certain assets from the estates. To prove that there has been a theft from the estate before inventory, the plaintiff will need extensive evidence in the form of documents and testimony. Hess Verdon probate attorneys can work with expert investigators to help you build your case.

What Happens When a Beneficiary Steals from an Estate

When the Grantor dies, some family members feel they are entitled to the estate, and they rummage throughout the house looking for jewelry, hidden money, antiques, and on-and-on. Please take note, family theft from an estate before inventory happens very secretly and only is found out when the will or Trust calls them out for the inventory.

Inheritance Theft Laws

What are some commonly misappropriated assets?

• Family photos, heirlooms
• All types of furniture and small appliances
• Jewelry, Artwork, antiques
• Cash hidden in the home
• In some instances, classic cars, and real estate.

So, as an Executor or a Trustee, it’s crucial to secure all assets right away, and inform all beneficiaries of your fiduciary duty and how you will be transparent on managing the estate. Now, if you believe there was pilfering that took place, you might be able to quietly resolve any “misunderstandings” by convincing the person who misappropriated the Trust assets to return them; otherwise, the penalty from stealing from an estate can be criminal if proven.

Now, if they don’t, then the uphill battle arises. You may hire a forensic accountant to review and examine the decedent’s records, i.e., financial documents and properties deeds, to ensure no underhanded dealings. With this information, you may convince the beneficiary to return the assets. It can be as simple as grabbing family albums, and they did not understand the gravity of their mistake.

Statute of Limitations for Inheritance Theft

The statute of limitations for claims against a trustee for mismanagement, including breach of trust or misappropriation of assets, is three years, providing a timeframe within which beneficiaries must take action.

File a Lawsuit to Recover Assets

As an Executor or Trustee, protecting estate assets from theft is a crucial duty. If assets are stolen, for example, by a sibling from the Trust, obtaining a court order from a probate judge might be necessary to return the missing items.

If there is sufficient evidence and the assets have not been returned, it may be necessary to consult with a .

What Happens When the Executor or Trustee is Stealing from the Estate?

In cases where a Trustee might be stealing from a Trust, such as through possible forged documents, action should be taken within 120 days after the Trustee notifies a beneficiary under probate court section 16061.7. This period is crucial for reviewing all documents and challenging the Trust or Will if discrepancies are found.

If you believe you’ve been wronged, saying “my brother cheated me out of my inheritance,” it’s essential to act quickly. Consulting a Trust litigation attorney with comprehensive knowledge can help you contest the matter effectively.

Key Takeaway: As a beneficiary, your rights remain intact even in the face of trust fund misappropriation. If there is theft by an Executor or Trustee, it’s crucial to act promptly. However, if the theft occurred through document forgery and you were notified but did not act, contesting the Trust might no longer be an option.

How to prove inheritance theft

Proving Inheritance Theft: To prove inheritance theft, it’s crucial to gather and review key documents like wills, trust paperwork, and financial statements. These documents can reveal irregularities or suspicious activities pointing to theft. Ensuring the authenticity of these documents and checking for any signs of forgery or alterations is vital. It’s also recommended to consult with a legal expert for a thorough investigation.

How do you prove inheritance theft

Proving Inheritance Theft: To establish evidence of inheritance theft, begin by collecting crucial documents like wills, trust paperwork, and financial statements. A thorough review of these documents can unveil any irregularities or suspicious activities suggestive of theft. It’s imperative to verify the authenticity of these documents and ensure they haven’t been tampered with or forged. For a comprehensive assessment, consider seeking legal expertise.

Inheritance Theft Statute of Limitations

Statute of Limitations for Claims Against Trustees: If you intend to file a claim against a Trustee for various forms of mismanagement, including breach of Trust, misappropriation of Trust assets, unfair treatment of beneficiaries, or self-dealing, the statutory deadline typically spans three years. It’s crucial to consult with legal experts for precise guidance on your specific situation and to understand the complete details of the statute of limitations in your jurisdiction. Learn more about Claims Against Trustees.

Executor Stealing from Estate

If an executor steals from an estate, they may face consequences such as removal from their role, an order to repay the stolen funds, and a directive to return any misappropriated property to the estate.

Executor Stole My Inheritance

If an executor misappropriates your inheritance, legal actions are available. With evidence of theft, consult a probate lawyer to pursue a restitution order. It’s crucial to act promptly to protect your rights and recover assets.

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