Few betrayals cut deeper than learning a trusted family member stole from a shared inheritance. It breaks trust, puts a family legacy at risk and can threaten the financial future of those meant to benefit. In addition, it can also damage long-standing relationships within the family.
In some cases, trustees and executors handling large California estates may misuse their role for personal gain. But families are not without options. This guide explains common signs of misuse and outlines legal steps that can help protect what beneficiaries are entitled to receive.
Recognizing red flags in affluent estates
In more complex estates, appointed trustees or executors often have several ways to hide theft. Some common warning signs of misappropriation include:
- Failing to provide formal accounting
- Communicating unclearly or inconsistently
- Transferring real estate without authorization
- Making loans to family members from trust principal
- Commingling personal and estate assets
Catching these problems early can help beneficiaries protect the estate, recover misused assets and hold the trustee or executor accountable.
What strategic actions can families take?
In probate litigation, a petition may ask the court to remove a fiduciary for wrongdoing and make them personally repay any losses they caused. In California, families can file a Probate Code § 850 petition to confirm that property belongs to an estate or trust and to recover assets someone wrongly took or transferred.
California Probate Code § 859 can also offer an extra remedy when someone wrongfully takes, hides or gets rid of estate or trust property in bad faith. A judge can order the trustee or executor to pay double the property’s value, plus reasonable attorney’s fees and court costs. But these damages are not automatic. The person asking for them must provide evidence that meets the statute’s requirements, including proof of bad faith when needed.
Helping you restore your estate
If you think a family member is mishandling or taking estate assets, acting quickly can help protect your inheritance and future. The attorneys at Buffington Law Firm, PC can represent your family in court and help resolve this sensitive dispute.