FAQs on Executor and Power of Attorney Fraud

Executors and agents acting under powers of attorney have significant authority. Unfortunately, some individuals may abuse this authority to enrich themselves or others at the expense of the persons to whom they owe legal duties of care and loyalty. Some common questions that people have about executor and power of attorney fraud include:

What Is Executor and Power of Attorney Fraud?

Executor or power of attorney fraud occurs when the executor of an estate or an agent under a power of attorney commits an unethical, illegal, or fraudulent act contrary to their duty to act in the best interests of an estate or principal. Common examples of fraudulent activity by an executor or agent include:

• Taking assets from the estate or the principal’s accounts, except for lawful reimbursement for services to the estate
• Disregarding the will to distribute estate assets to non-heirs or non-beneficiaries
• Taking unreasonable compensation or reimbursement for services
• Selling assets for less than fair value to themselves or acquaintances/accomplices
• Using a principal’s, decedent’s, or estate’s bank account to pay the executor’s or agent’s personal expenses
• Submitting a fraudulent will to probate

What Are the Signs of Executor or Power of Attorney Fraud?

Signs to watch out for that may indicate that an executor or agent has engaged in fraudulent activity in their role include:

• Lack of transparency regarding their activity, including refusals to provide accountings
• Unexplained or unusual transactions in a principal’s or decedent’s bank accounts
• Delays in inventorying of assets
• Delayed distribution of estate assets
• Sales of estate assets that occur quickly to suspect parties or for seemingly far less than fair value
• Demanding seemingly excess fees for services
• Missing court filing deadlines

How Do I Protect Myself Against Executor and Power of Attorney Fraud?

You can best protect yourself and your loved ones from financial losses due to executor or power of attorney fraud by choosing a trustworthy person to serve as your agent or executor. As a beneficiary or heir, you can protect your inheritance against executor fraud by regularly checking in with the executor to obtain updates on estate administration, which may clue you into irregular or suspicious behavior. Principals should also review their bank statements for unfamiliar transactions. Finally, principals or beneficiaries should familiarize themselves with the red flags that may signal fraudulent activity by an executor or agent.

What Steps Should I Take When I Suspect Executor or Power of Attorney Fraud?

Actions you can take if you suspect fraudulent activity by an executor or agent include:

• Express your concerns directly to the executor or agent, as they may provide information or documentation to ease your concerns
• Gather evidence of suspicious activity, such as bank statements, legal documents, and copies of emails or other written communications
• Contact financial institutions if you suspect unauthorized withdrawals or transactions
• Contact an experienced attorney to guide you through your legal rights and options

Contact an Estate Administration Attorney Today

If you believe you have become the victim of fraudulent activity by an estate executor or an agent acting under a power of attorney, get the legal help you need from a seasoned estate lawyer. Contact The Law Offices of Saia, Marrocco & Jensen Inc. today for a free, confidential consultation with our legal team to discuss your rights and options.