Estate Fraud in Alberta
Estate fraud is a growing issue in Alberta, affecting families, individuals, and communities alike. As the population ages and the distribution of wealth increases, estate fraud is becoming an increasingly prominent concern. Fraudulent activities targeting estates can result in devastating financial losses, fractured relationships, and legal battles. Understanding the nature of estate fraud and how to protect oneself is crucial for ensuring that your assets are distributed according to your wishes.
Estate fraud refers to any act of deception, misrepresentation, or theft regarding the assets of a deceased person’s estate. This crime can involve the manipulation of legal documents, such as wills and powers of attorney, or the improper handling of assets by executors, beneficiaries, or others involved in the estate process.
Estate fraudsters use various tactics to manipulate estate documents and steal assets. Some common scams include:
- Forgery of wills: Criminals may forge or alter a will to divert assets to themselves or others. In some cases, this may involve faking signatures or creating fraudulent codicils (amendments to the original will).
- Exploiting the elderly: Seniors are often the targets of fraudsters who may deceive them into signing documents without fully understanding the consequences. They may even pressure the elderly into making changes to their will or signing documents under duress.
- Misuse of powers of attorney: Powers of attorney are often misused, with individuals taking control of a deceased person’s financial and legal affairs to benefit themselves, often at the expense of rightful heirs.
- Undue influence: Some beneficiaries use emotional manipulation or coercion to pressure the deceased into making decisions or signing documents that they would not have otherwise.
Most Common instances of fraud in estate administration
1. Selling assets for less than fair market value. This can apply to either a third party sale or sale to one or more of the beneficiaries resulting in the other beneficiaries being deprived of their share of the true value of the asset.
2. An executor or beneficiary transferring an asset into their own name without consent or knowledge of the beneficiaries.
3. An executor or beneficiary removing a deceased’s personal assets from the estate without consent or knowledge of the beneficiaries.
4. Using estate funds to pay for personal expenses not related to administration of the estate.
5. Concealment of assets belonging to the estate
6. Embezzlement of estate assets
7. Non-disclosure of jointly held assets that were not meant to have a right of survivorship to apply.
Estate planning is the best defense against fraud. By taking the necessary precautions, individuals can help ensure their estate is protected from fraud and is distributed according to their wishes.
- Create a legally sound will: Work with an experienced estate lawyer to create a clear, valid will that complies with Alberta’s legal requirements. Ensure it is witnessed properly and stored in a safe location.
- Appoint a trustworthy executor: Choose someone who is reliable, trustworthy, and transparent. It is also a good idea to appoint more than one executor to ensure checks and balances.
- Consider setting up a trust: A trust can provide an added layer of protection, particularly for vulnerable family members. A trust allows you to designate a trustee to manage assets for the benefit of the beneficiaries.
- Discuss your plans with your family: Openly communicate with your loved ones about your estate plan and your wishes. This can help prevent confusion and conflict later on.
- Regularly update your estate documents: Ensure that your will, powers of attorney, and other estate-related documents are updated regularly to reflect your current circumstances.
If you suspect that estate fraud has occurred, it’s crucial to act quickly. Estate fraud can often go unnoticed until it’s too late, so being vigilant is essential.
- Consult a lawyer: If you believe there has been fraud in the handling of an estate, consult with an estate litigation lawyer. They can guide you through the process of investigating potential fraud and taking legal action.
- Contact the police: If there is evidence of criminal activity, you should report it to local law enforcement.
- File a complaint with the Alberta Law Society: If the fraud involves the actions of a lawyer, you can file a complaint with the Alberta Law Society for potential professional misconduct.
Estate fraud is a serious concern in Alberta that can lead to significant financial and emotional harm. By being proactive in your estate planning, seeing a lawyer for drafting your estate planning document, appointing trustworthy executors, and safeguarding your legal documents, you can help protect your assets from fraudulent activities. Open communication with your family and professional legal advice are key components of a secure and transparent estate plan.