Understanding Inheritance Theft Laws

Receiving an inheritance can sometimes provide an unexpected financial windfall. Unfortunately, this can open the door to people attempting to steal what you’ve inherited. Inheritance theft is a very real problem for people who inherit money, property or other assets. If you’re set to receive an inheritance or have received one that was stolen from you, it’s important to understand your legal rights for getting your assets back.

A financial advisor can help with estate planning to minimize potential conflicts after your death.

What Is Inheritance Theft?

Inheritance theft can take different forms, with some more obvious than others.

Common examples of inheritance theft, or inheritance hijacking, include:

An executor of a will who steals or attempts to hide assets from the estate inventory
A trustee who diverts assets from a trust for their use or benefit
Executors or trustees who charge excessive fees for their services
Abuse of power of attorney status
Use of coercion or undue influence to force a change in the terms of their will or trust
Fraud or forgery related to the will or trust document, or the destruction of said documents

Inheritance theft can also happen on a more personal level. Say you and your sister share caregiving duties for your aging mother. Your sister has access to your mother’s bank accounts and, without your knowledge, withdraws a large amount of cash while your mother is still living.

Meanwhile, your mother names you as executor of her will. Once she passes away, you create an inventory of her assets and discover money missing from her bank accounts. If this money were part of a joint inheritance, this could constitute a violation of your state’s inheritance theft laws.

Is Stealing Inheritance a Crime?

People who commit inheritance theft, whether it’s an executor or beneficiary, may be subject to both criminal and civil penalties.

For example, a trustee who embezzles money from someone’s estate can be charged with a felony or misdemeanor. They may also face lawsuits from the trust’s beneficiaries for breach of fiduciary duty. Ultimately, it depends on state laws.

Likewise, a caregiver who steals money from someone’s bank accounts or coerces them into signing over assets could face a felony or misdemeanor. Typically, these charges depend on the nature of the theft and the value of the stolen property. Felony convictions can result in a prison sentence, while misdemeanor convictions typically carry jail time and/or fines.

The injured parties, or beneficiaries, may also choose to pursue a civil claim. Using the previous example, you may decide to sue your sister for the money taken from your mother’s bank account. If you win a judgment, she must repay your share of those assets, along with your attorney’s fees.

Click Your State to Get Matched With Financial Advisors That Serve Your Area

Choose your state and answer some questions to get matched with up to three fiduciary advisors that serve your area.

Inheritance Theft Laws

Each state has different laws regarding inherited assets, but they’re all designed to do the same thing: protect beneficiaries’ rights.

State inheritance theft laws typically cover four distinct aspects:

Who committed the inheritance theft (i.e. a family member, friend, caretaker, etc.)
When the theft occurred (i.e., before or after the owner of the assets passed away)
What was stolen (i.e. bank accounts, real estate, jewelry, etc.)
How the theft occurred

It’s important to remember that inheritance theft can take many different forms. One of the most common examples involves elder financial abuse. This is when someone takes advantage of an elderly person’s weakened physical or mental state to steal from them. It is a common risk that many with aging parents face when someone else is their parents’ primary caregiver.

What Can You Do If Someone Steals Your Inheritance?

If you believe someone has stolen your inheritance, it’s important to review inheritance theft laws in your state.

Each state has different guidelines regarding:

What constitutes inheritance theft
Eligibility to bring a civil claim or file a criminal complaint in connection with a stolen inheritance
The legal grounds for successfully pursuing an inheritance theft claim
What penalties and remedies apply for inheritance theft

Talk to an experienced estate planning attorney to determine if you have grounds to file a claim for inheritance theft. Your attorney may advise you to take certain steps, including inventorying the estate’s assets and verifying trust documents. You can also review estate documents, such as wills or trusts, for any potential signs of fraud or forgery.

For a larger estate, it may be necessary to hire a forensic accountant. These professionals specialize in analyzing financial documents, which is helpful when creating a paper trail to prevent inheritance theft.

You can also reach out directly to the person who you believe stole the inheritance. Be sure to check with your attorney, as they may advise you not to do this. However, if the person is aware that you’re pursuing a civil claim or criminal case against them, they may return any stolen assets to avoid legal trouble.

If your request is unsuccessful, you may have no choice but to pursue a civil or criminal case.

General Tips to Protect Your Inheritance

Gather Documents

In order to protect an inheritance, you must first understand its structure.

If you are named as a beneficiary, ensure you have copies of all relevant estate documents. This includes the will, trust and beneficiary designations.

Maintain Communication

Keep communication open with the executor or trustee. This will help you stay informed about the estate’s management. Having clear documentation and records can help prevent misunderstandings or misuse of assets later.

Enlist the Pros

Consider working with qualified professionals to safeguard your inheritance.

An estate planning attorney can explain your legal rights as a beneficiary and help address concerns about the estate’s management.
A financial advisor can assist with managing or investing inherited assets in a way that aligns with your goals.
Hiring an accountant may also be helpful for tracking transactions or handling complex tax issues related to inherited property.

Stay Organized

Maintaining good organization and oversight is another important step.

Keep detailed records of all communications, asset valuations and distributions. If you notice irregularities, such as missing assets, unexplained withdrawals or delays, document your concerns right away. Don’t hesitate to raise them with the executor, trustee or your attorney.

Acting quickly is often key to recovering or protecting assets if theft or mismanagement occurs.

Plan Ahead

Lastly, think ahead about how to protect future inheritances within your own estate plan.

If you expect to pass assets to others, consider using a trust to control how and when heirs receive funds. Naming reliable trustees and regularly reviewing estate documents can prevent disputes while reducing the chance of mismanagement after your death.

Taking proactive steps now helps secure your legacy and minimize potential conflicts later.

Warning Signs That Something Is Wrong Before It Is Too Late

Most inheritance theft does not happen in one dramatic moment.

Instead, it builds slowly through small actions that are easy to miss in real time. A document is changed. An account is drained in increments. A family member quietly gains control over finances while everyone else assumes things are fine. By the time the full picture comes into focus, the money is often gone, and recovery is difficult.

Knowing these warning signs can make the difference between catching a problem early and discovering it after the damage is done.

Late Changes

One of the biggest warning signs is a sudden change to a will or trust late in someone’s life – especially if it benefits one person at the expense of others. This becomes more concerning when the person making the changes was battling cognitive decline or serious illness. It is also worrisome if the grantor is heavily dependent on the individual who stands to gain.

Courts do sometimes overturn these changes. However, proving undue influence or lack of capacity after death is a difficult and expensive process.

Isolation

Isolation is another red flag that often comes before financial manipulation.

When one family member controls who can visit, call or spend time with an aging parent, this can serve a purpose beyond restricted caregiving. It becomes much easier to pressure someone into signing over accounts, changing beneficiary designations or rewriting estate documents when there is no one else in the room to ask questions or push back.

Unexplained Activity

Unexplained financial activity in a parent’s accounts, such as these events, should always prompt a closer look.

Large withdrawals
New joint accounts that did not exist before
Property transfers
Changes to insurance beneficiaries that the account holder cannot clearly explain

These things do not automatically indicate theft. However, when the person making the changes is also the person who benefits, the situation deserves more scrutiny than usual.

Defensive Behavior

How an executor or trustee responds to basic questions can also tell you a lot. They should provide a clear accounting of assets, explain what has been spent and share documentation with the appropriate parties.

If requests for information are met with defensiveness, delays or excuses, that resistance is worth taking seriously. Transparency is not optional for someone in a fiduciary role. It is the baseline expectation.

New Arrivals

Pay attention when new people appear in the financial picture late in someone’s life. A new partner, caregiver or friend who suddenly has access to bank accounts, appears on property deeds or is added to legal documents may have perfectly good reasons for being there.

However, the timing and speed of those changes matter. When someone new stands to inherit a significant share of the estate, it is reasonable to ask whether the grantor fully understood what they were agreeing to.

Bottom Line

Legal recourse is available for victims of inheritance theft. This may include filing a lawsuit to recover stolen assets or contesting a will in probate court. It’s essential to act swiftly in these situations, as statutes of limitations can restrict the timeframe for legal action. Consulting with an estate law attorney can provide invaluable guidance and increase the likelihood of a favorable outcome.

Estate Planning Tips

Consider talking to a financial advisor about what to do if someone steals your inheritance or how to protect your heirs from theft. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area. You can then have a free introductory call with your advisor matches to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you disagree with the way an executor or trustee is managing an estate, you could take steps to remove them, even if no theft has occurred. There may be situations where you might feel it necessary to contest someone’s will or a trust if you believe that it’s in some way invalid or that a breach of fiduciary duty has occurred on the part of the trust. In those situations, it may be helpful to talk with an estate planning attorney to discuss whether you might be able to challenge a will or trust.