When managing a loved one’s estate in California, you may receive notice of a claim from a creditor or person claiming heirship from your loved one. However, you may have never heard of this party before. Your loved one’s estate may have become the target of efforts to defraud the estate of money or assets. Knowing how to address fraudulent claims during probate can help protect your loved one’s legacy and your family’s wealth.
What Is a Fraudulent Claim in Probate?
A fraudulent claim during a San Jose probate proceeding can include any false claim against a decedent’s estate designed to obtain money from the estate that the claimant has no right to receive. Some of the most common types of fraudulent claims that occur in probate include:
- Fake creditor claims (i.e., someone claiming to own a debt owed by the decedent or estate that does not exist)
- Inflated debt claims (i.e., a legitimate creditor claiming more than the decedent or estate owes)
- Illegitimate beneficiary/heir claims (i.e., claims by a purported long-lost child or family member)
- Forged or altered wills that benefit the person(s) presenting the will more than a competing will or intestate succession laws would
Signs of Fraudulent Claims
Some of the signs of a fraudulent claim made against your loved one’s estate include:
- Claims filed late or at the last minute
- Claims filed without sufficient documentation or with suspicious documentation
- Sudden appearance of unknown descendants or family members of the decedent or individuals claiming beneficiary status under an unknown will
- Individuals presenting a previously unknown, conflicting version of the decedent’s will
- Pressure from creditors or beneficiary claimants to distribute assets quickly, including threatening to bring costly litigation if the personal representative does not make distributions quickly
Personal representatives and family members should review all supporting documentation thoroughly for red flags indicating fraud, such as forged signatures, inconsistent dates, or signs of alteration. Keeping detailed records can also help families quickly identify fraudulent claims.
Steps to Address Fraudulent Claims
As the personal representative of an estate or the family member of a decedent, steps you can take to protect your loved one’s estate and your family’s inheritance from fraudulent claims include:
- Notify the Probate Court – You can file an objection to a suspected fraudulent claim and request a hearing to present evidence contradicting the claim.
- Thoroughly Investigate the Claim – Verify the authenticity of any documents presented in support of a claim, including by working with handwriting experts or forensic accountants.
- Take Preventative Measures – Keep estate documents organized and secure, and communicate with other family members or interested parties to identify potential inconsistencies in a suspected fraudulent claim.
- Seek Legal Assistance – Contact a probate attorney as soon as possible for legal advice about your options for responding to a potentially fraudulent claim.
Legal Consequences for Filing Fraudulent Claims
Parties who knowingly file fraudulent claims against an estate may face various legal consequences. A party may face civil penalties for attempting to defraud an estate, including the court holding the party in contempt of court or imposing an order of sanctions requiring the party to reimburse the estate or other affected parties for the legal expenses incurred in defending against the fraudulent claim.
In some cases, a party who attempts to defraud an estate could face criminal charges for offenses such as forgery or perjury. A criminal conviction could result in penalties such as incarceration, fines, and an order of restitution to reimburse the estate or other affected parties for losses caused by the offense.
Probate courts typically act swiftly to hold fraudulent parties accountable when proof of the false nature of their claims becomes apparent.
Contact a Probate Attorney Today
Fraudulent claims made during probate can lengthen the probate process, increase legal fees, and put an estate and a family’s inheritance at risk of paying bogus claims. When someone has made a fraudulent claim against your loved one’s estate, you need experienced legal guidance to protect your family’s interests. Contact BoyesLegal, APC, today for an initial consultation with a San Jose probate attorney to discuss your options.