Even though death is never an easy subject to address, we reach a certain point in our lives where we must decide where our money, property, and other assets go when we pass on. As anyone would, you’re likely to ensure that everything goes smoothly and according to plan.

But sometimes, family conflicts arise or the situation goes off the rails. If your inheritance plan gets sabotaged, it can be classified as a type of theft, referred to as ‘inheritance theft’ or ‘inheritance hijacking’, which can be charged as a felony.

Know the little unknown signs of inheritance theft. Source: Bankrate.com​

So what exactly is inheritance theft and how can you protect your money? To kick things off, it can occur in multiple ways. These may include:

1. Someone stealing, destroying, or forging will documents.
2. Coercing or forcing someone to change their will.
3. Stealing, hiding, or diverting assets from an estate or for personal gain.
4. Agents abusing the ‘power of attorney’ or making decisions that are not in the senior’s best interest.
5. Charging excessive fees for services related to executor or trustee duties.
6. Marrying under false pretences for the sole purpose of benefiting from an inheritance.

While inheritance theft can be carried out by professionals aiding in estate planning or execution, it’s more likely to occur within families or among close caretakers.

Emotional manipulation is the most common tactic used. This involves a family member, who is after someone’s assets, doing everything they can to win the person’s trust. Some family members may also threaten a person to reallocate their inheritance.

Family conflicts are more common than professional-related issues. Source: A Place for Mom​

It’s important to know that stealing assets from an older adult or forging documents related to finances is considered a form of elder abuse. To combat experiencing these issues, start your estate planning process early with the help of a lawyer who specialises in this area.

An experienced attorney can help you create a sound estate planning agreement. Ensure that you keep several copies of documents related to your estate and don’t be afraid to be vocal about your wishes with your family or anyone involved.

You may also opt to distribute your assets early so the plan follows through the exact way you prefer it to, UK-based Senior Investment Manager Jason Porter advised.

This could lower the chances of being coerced or diverted from the plan. However, you may want to consult a tax prep expert to understand the impact of hefty gifts.

Keep an eye out for manipulative family members. Source: Learning Mind​

You can also decide to have multiple executors distribute your assets according to your estate plan.

What if you’re an heir? How can YOU protect your inheritance then? First, keep an eye out for family members that seem to have undergone a sudden switch, such as mending burned bridges or being unusually nice to a relative they’ve had several conflicts with.

Financial abuse and exploitation–mismanagement or misuse of money–can be challenging to spot. But among the many red flags include sudden changes in banking, large or unexplained withdrawals or asset transfers, and unpaid bills.

Laws related to inheritance theft and its penalties vary depending on the state you’re residing in. If you suspect this is occurring, reach out to an estate planning attorney or forensic accountant who can help you address these concerns. You can also opt to report elder abuse to the Australian Human Rights Commission or your state agency.

What are your thoughts on inheritance theft? Do you know of any horror stories related to it? Let us know in the comments!

Learn more about the different types of elder abuse by watching the video below:

Source: Australian Human Rights Commission​

 

[Joydie]

This is a subject I feel very strongly about. During my nursing days, I witnessed literally dozens of families sitting or standing around a dying relative’s bed arguing about things such as when to sell the house, which real estate firm to use, who gets the jewellery, who gets the Royal Doulton teaset, and worst of all, how much money’s in the bank and how to access it. All this while their loved one was still very much alive, albeit unconscious in some cases.

The thing that really drives me nuts though, is the statement: ‘It’s what Mum/Dad would have wanted’, frequently uttered by a child who rarely visited and spent the visit arguing when they did. If the deceased is someone I know, I can never believe how a son or daughter can say this. If they truly believe what they’re saying, in most cases, they’re delusional. What their idea of their loved one’s wishes is, and reality, are frequently poles apart.

If you bring this down to the basics, it’s all about the money.

 

[Ricci]

I was advised by a solicitor to handwrite a letter to go along with my will, laying out my wishes and the reasons for them. That way if my will is contested as I firmly believe it will be then the judge has my words to make his judgements on, it would be like I was actually there speaking.

 

[terri]

I was advised by a solicitor to handwrite a letter to go along with my will, laying out my wishes and the reasons for them. That way if my will is contested as I firmly believe it will be then the judge has my words to make his judgements on, it would be like I was actually there speaking.

That's a burden for you Ricci.
I dont think that will happen to me as I dont have enough to fight about. Much easier.

 

[54-11]

That's the way to do it, Ricci, even if there is not a lot to fight over. My 96-year old Mum has done the same, and as her executor, I have shared those instructions with everyone. Not just the immediate family, but all the other descendents as well.

 

[Zoya]

I was advised by a solicitor to handwrite a letter to go along with my will, laying out my wishes and the reasons for them. That way if my will is contested as I firmly believe it will be then the judge has my words to make his judgements on, it would be like I was actually there speaking.

I hope it doesn’t happen that way Ricci and all behave themselves.

 

[thinkbeforedecide]

It depends on each family and how greedy your siblings and their spouses are. You should be able to observe their behavior growing up together but may be a little bit more difficult to know about their spouse. I am lucky not to have any problems from inheritance from my parents and parents-in-law, the siblings picked few of our favorite porcelains and jewelries the rest went to the estate or charities. Without conflict we are still close knit families which is more important than greedy for money.