If you’re the beneficiary of an estate, then it’s important that you receive the full inheritance that your departed loved one left for you. However, the money or assets that are supposed to be distributed to you could be stolen by another beneficiary or even the executor. What’s the penalty for stealing from an estate, and what can you do to recover the stolen assets?
What Qualifies as Stealing?
What exactly does it mean to ‘steal from an estate?’
There are two different ways that an estate’s money or assets can be improperly taken:
- Estate Theft: When someone takes items that belong to a decedent or their estate without permission. Unfortunately, it can be difficult to prove that something has been stolen from an estate because such theft usually occurs near or very soon after the decedent’s death, before an inventory is made.
- Estate Fraud: Estate fraud is when the executor or someone else takes money or assets from the estate through fraudulent means: creating false account statements, paying oneself for unnecessary expenses, making unauthorized transactions with estate funds, etc.
Related Blog: When to Hire an Estate Litigator
Which Items Are Commonly Stolen from an Estate?
When it comes to estate theft, there are a handful of items and personal belongings that are commonly taken from the decedent’s estate without permission:
- Cash
- Jewelry
- Artwork
- Vehicles
- Real estate
- Furniture & antiques
- Family heirlooms
- Family photos
- Appliances
What is the Penalty for Stealing from an Estate?
Here are the most common penalties for stealing from an estate in regards to both estate theft and estate fraud:
- Penalties for Estate Theft: Estate theft rarely leads to criminal proceedings. If you have evidence that someone has unlawfully taken assets from the estate, you could file a lawsuit and get a court order that forces the person to return the stolen assets. If the assets are not recoverable, you could seek financial compensation or punitive damages. The person who stole the assets may also be liable for attorney’s fees and legal costs.
- Penalties for Estate Fraud: Estate fraud has tougher penalties. If the executor will have violated their fiduciary duty, the beneficiaries can petition the court to remove the executor, to pay back the money that was lost or stolen (plus punitive damages), and for attorneys’ fees. Depending on the severity of the fraud, the executor could also face a misdemeanor or felony that involves a prison sentence.
Related Blog: What Should I Do if a Trustee is Self-Dealing?
What Should I Do If Someone is Stealing from an Estate?
If a family member has taken something from the estate, it’s best to speak with them directly. Sometimes, a “theft” is nothing more than a misunderstanding that can be easily cleared up; you just need to inform the person that the item is a part of the estate, therefore it must be returned so that it can be appropriately distributed by the executor. The person may be dealing with grief, so don’t forget to show compassion and understanding.
If the person doesn’t cooperate with you, or if you’re dealing with an executor who you suspect is mishandling or misappropriation of estate funds, then it’s best to contact a fiduciary litigation firm.
Related Blog: How To Manage an Uncooperative Beneficiary
Fiduciary lawyers can help you protect your rights as a beneficiary, and they can monitor the estate to figure out whether or not the trustee has breached their fiduciary duty.
How do you know whether or not it’s worth the expense to hire legal counsel? It depends on the size and value of the estate, and also how meaningful to you the stolen assets are.When you speak with a fiduciary litigation firm, the attorneys should be able to provide you with guidance on your options and possible legal outcomes. For example, our attorneys at Gaslowitz Frankel (we’re a fiduciary litigation firm that handles will and trust disputes in Georgia) can set up a consultation to discuss the case and help you determine the best course of action.
