Actions should be taken to prevent inheritance theft.
Estate planning is necessary for giving legal authority to your wishes regarding the distribution of your assets after you have died.
In addition to providing distribution directions, estate planning should include protections against inheritance theft.
Although assets may be intended for certain heirs, others can try to manipulate or steal the property before the rightful individual can claim it.
While strangers can threaten the security of an estate, the most common culprits are caregivers, relatives, and other heirs.
When someone close to the decedent steals all or part of the inheritance, it may be impossible to recover the assets after the deceit has been uncovered.
With strategic estate planning, individuals can minimize the risk of inheritance theft.
Inheritance theft can include money from bank accounts as well as physical property like family heirlooms.
People can steal an inheritance in a variety of ways.
One common method is the exertion of undue influence.
What is undue influence?
This occurs when trusted individuals pressure vulnerable adults to change the terms of their last will and testament or trust to direct the inheritance away from the intended heirs.
Because this action is often done privately, it can be challenging to prove without documentation.
In addition to pressuring someone to change their documents, some thieves will hide or destroy documents, forge signatures, or move money out of accounts before probate proceedings.
Physical property may even be taken from the home during or after the funeral, before the executor can inventory the possessions.
In my more than 30 years as an estate planning attorney, I know that inanimate items of tangible personal property can suddenly become animated following the owner's death and find their way into the possession of those not rightfully entitled to the same.
You have heard it said that "possession is 9/10ths of the law."
However, in reality, it is 10/10ths, especially when hidden or fenced for cash.
Lastly, acting fiduciaries can abuse their roles when there is little to no accountability.
Powers of attorney, executors, and trustees may be tempted to use their legal authority to divert or mismanage assets.
Having a legally sound and transparent estate plan is the best protection against inheritance theft.
Working with an experienced estate planning attorney helps to ensure your trust or last will is clear.
By avoiding verbal agreements or vague language, you can reduce confusion.
Chaos and confusion make it easier for thefts to occur.
In addition to creating an estate plan, reviewing and updating it regularly is essential.
Major life events like divorces, marriages, births, or estrangements can impact your wishes.
Neglecting to update your documents could leave someone you no longer trust, either inheriting or being in charge of managing your estate.
Yikes!
Administering an estate is a significant responsibility.
When selecting trustees and executors, you must focus on whether the individuals are communicative, reliable, and trustworthy.
If you do not have a friend or relative who fits this description, it may be wise to designate a professional fiduciary or financial institution.
Family conflict often precludes inheritance theft.
When loved ones expect one outcome and the estate plan indicates something different, estate battles can arise.
To avoid this, you should proactively communicate your decisions and reasons with your loved ones.
This will minimize the distrust and provide estate administrators with accountability to follow your wishes.
Executors and trustees should keep detailed records of their actions and regularly update beneficiaries.
When there are discrepancies, they can be identified and rectified in a timely manner.
Some people also choose to include legal safeguards in their estate plans.
What are examples of legal safeguards?
Naming co-trustees or co-executors can ensure there is accountability over every action taken with the estate.
You can also include clauses to remove trustees from their duties if they fail to manage your assets appropriately or to provide reports to beneficiaries.
Lastly, you can empower your heirs to talk with an experienced estate planning attorney if they suspect inheritance theft.
Stealing assets can come with criminal and civil penalties.
Those who fail to create a comprehensive estate plan are at greater risk of inheritance theft.
As a result, financial and familial legacies can quickly erode.
If you do not yet have an estate plan in place or have not reviewed your current plan in recent years, request a consultation with our Harvest Law KC office in Overland Park, Kansas.
Trusted friends and family are often the perpetrators of inheritance theft.
Common methods of stealing or redirecting assets include exerting undue influence, forging or destroying documents, and misusing authority in managing or settling an estate.
Having clear and comprehensive estate planning documents reduces the risk of confusion or abuse of power.
In addition to appointing trustworthy executors and trustees, setting up accountability and oversight can be helpful.
Depending on your family dynamics, communicating your wishes clearly to your loved ones can help them take swift legal action when your wishes are violated.
Unfortunately, I have also witnessed family members being the worst offenders.
In the end, clearly and legally document your wishes through your estate planning attorney, as the only person with no "skin in the game" regarding any inheritance from you.
This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
References: USA Today (March 14, 2025) "Relatives charged in 1997 murder of 81-year-old aunt in plot for inheritance" and SmartAsset (March 7, 2025) "Understanding Inheritance Theft Laws?"
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