After someone passes away, the probate court will appoint an executor (also referred to as a personal representative or estate administrator) to navigate probate. The executor is often named in the decedent’s will. The executor is responsible for carrying out the decedent’s wishes in accordance with the terms of the will while also abiding by all of Maryland’s probate laws and procedures.
Unfortunately, some executors take advantage of the situation where they are managing money and commit executor fraud. Fraud occurs when they unlawfully take or misappropriate money, assets or receive some other type of illegal benefit. Some examples of how this may occur include:
- Withholding inheritances from rightful beneficiaries,
- Lying about or concealing estate assets,
- Failing to notify beneficiaries,
- Falsifying liabilities,
- Charging inflated fees, and/or
- Selling assets for less than market value.
During the probate process, Maryland laws require the executor to file inventories and accountings showing the estate’s assets, liabilities and all distributions made. Executors must also notify creditors and show all claims as being paid or satisfied in some manner appropriate. The probate court has the authority to order an accounting at any time during the process.
An executor can be sued for fraud. A probate litigation attorney can help a beneficiary sue the executor to expose the fraud and also attempt to recover damages. Anyone who suffers a loss because of the fraudulent activity has standing to initiate the lawsuit. The executor can also hire an experienced probate litigation attorney to mount a defense to the lawsuit. If the executor loses, he or she will be removed as the executor and face monetary damages as a result of the breach of fiduciary duty. Criminal charges may also be pursued.
If you suspect executor fraud, it may be difficult to uncover the fraudulent actions without the keen eye of an experienced probate attorney. The attorney will know how to analyze the inventories and accountings to spot potential issues. It may also take digital forensics experts to discover hidden financial assets.
Naming an executor to administer your estate when you are in the planning process requires selecting someone who is trustworthy and financially competent. For more information on avoiding the perils of executor fraud, uncovering potential executor fraud or defending yourself from accusations of fraud, contact the experienced probate attorneys at Stouffer Legal in the Greater Baltimore area. You can schedule an appointment by calling us at (443) 470-3599, emailing us at office@stoufferlegal.com, or you can register for a webinar below:
https://attendee.gotowebinar.com/register/8475250447523686157
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https://attendee.gotowebinar.com/register/3569328520326426891
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