Inheritance theft can range from manipulating a person’s wishes while they’re still alive, to theft and embezzlement that occurs after the death.

Forging or Destroying Documents

Some family members (and advisors) might prepare a fake will or a fake amendment to a real will, giving the forger a bigger share of the inheritance.  A family member can also prepare a fake power of attorney with language that says one sibling over others should be in control of all assets.

For example:  a parent who leaves most of their estate to a disabled child who cannot take care of herself. In this case a sibling of the disabled child could destroy the will, then the parent would be considered to have died intestate, and the money would be distributed equally between the siblings.

Another example is when a sibling drafts a power of attorney and forges the parent signature.

Undocumented Loans

You can have family members who borrowed money from a relative might insist that such loans were gifts after the relative’s death. If there is no loan document in place, the heirs have no recourse to get the money back from the borrower on behalf of the estate. The only way to protect an estate from this kind of hijacking is to insist on loan documents whenever a large amount of money changes hands.

Denigration of Fellow Heirs

Rather than focus on the bonds of being a family, heirs are sometimes more focused on what they can do to increase their share of the estate. You can have a heir lie about the other heirs, claiming that one sibling can’t be trusted with money, while another has more than he needs. This kind of denigration can persuade an elderly parent to change their will in favor of the lying heir. Unfortunately, it is difficult for an heir who is being denigrated to protect themselves from this kind of insidious hijacking—in part because the denigrated heir rarely knows it has happened until after it is too late.

How to Protect Yourself

The best method of protecting your wishes is to put your estate documents in place; including having a will, health care directive and a power of attorney.  It is also a good idea to have a living trust.  If you are unsure how to proceed, talk with an estate attorney to make sure everything is correct and legally binding.