It’s always upsetting to lose a loved one – but grief can be compounded when you find out that your loved one was the victim of financial abuse before their death by another member of the family.
Financial abuse of the elderly is incredibly common but highly unreported, and most of the perpetrators are family members masquerading as trustworthy caregivers. However, California law provides ways to challenge improper transfers and potentially recover assets that should have remained part of the deceased person’s estate or trust.
What counts as financial exploitation?
Maybe a sibling made large withdrawals from a parent’s bank account or a favorite nephew convinced your elderly grandparent to quietly transfer ownership of their home to them, knowing you wouldn’t find out right away. What can you do about it now?
Not every asset transfer made before someone’s death is improper or a sign of financial abuse. People generally have the right to give away their own money and property, even if their decisions seem unfair to others. However, transfers due to fraud, coercion or undue influence may be challenged.
Signs of financial exploitation include:
- Large, unexplained withdrawals from their bank accounts before their death with no reasonable explanation
- Real property transferred to a relative for little or nothing in return, especially when the transfer was unexpected or hidden from other relatives before their death
- Sudden changes to account and beneficiary designations for bank accounts and life insurance policies that pay directly upon the owner’s death
- Discovering that a family member was using a power of attorney for personal financial gain and treating the deceased’s bank accounts like their own
- Unusual gifts made while someone was seriously ill or experiencing cognitive decline, particularly if the gifts are very valuable or made in cash
Allegations of financial abuse and fraud don’t necessarily make a case, but the law does allow certain interested parties, such as the estate representative or a trustee, to petition the court for relief when there are disputes over property that might rightfully belong to an estate or trust.
The court can examine the circumstances surrounding a questionable transfer and determine whether the property should be returned. Evidence might include bank statements, financial records, medical records, communications between family members and testimony about the deceased person’s mental condition.
There can also be significant consequences for the person who took the property. Under California Probate Code Section 859, someone who commits financial abuse or wrongfully takes property belonging to an estate may be liable for twice the value of the property recovered.
The sooner you investigate suspicious financial moves by a relative, the better. Financial records can get infinitely harder to locate over time, and assets that were taken may be sold or spent. An experienced estate litigation attorney can help.