Estate fraud happens when someone entrusted with a decedent’s assets, such as an executor, an agent under a power of attorney, or a family member with access to accounts, uses deception, forgery, or concealment to benefit themselves at the expense of the rightful heirs or beneficiaries. Texas law gives beneficiaries several tools to expose this conduct, remove a dishonest executor, and recover stolen assets. Acting quickly can make a real difference.
Our team at Ford + Bergner, LLP has represented Texas families in estate and probate disputes for 25 years. If you suspect fraud in the handling of a loved one’s estate, we can help you understand your options. Fill out an online contact form or call (713) 260-3926 to discuss your situation.
Estate fraud can take several forms, and more than one often shows up in the same case. The most common include:
Family members are often the first to notice something is wrong, even before they can prove it. Warning signs include:
None of these signs alone proves fraud, but a pattern of several together is often enough to justify a closer look at the estate’s records. Nevertheless, there is a high bar to proving fraud, since you must demonstrate intentional conduct, as opposed to mere negligence. Reviewing records early can help clarify whether the pattern points to fraud.
Texas law does not require beneficiaries to wait out a dishonest executor. Under Texas Estates Code § 404.003, a court can remove an independent executor, meaning an executor who administers the estate without ongoing court supervision, without advance notice for misapplying or embezzling estate property, or for acting with gross misconduct or gross mismanagement, such as ignoring repeated requests for an accounting or letting estate assets sit unmanaged for months at a time.
A related provision, Texas Estates Code § 404.0035, allows removal after notice when an executor fails to file a required accounting, is guilty of gross mismanagement, or has a material conflict of interest that prevents fair administration of the estate.
Removal does not happen automatically. A beneficiary generally needs to file a petition, present evidence of the statutory ground, and request that the court appoint a successor to take over the estate. Because the burden of proof rests with the person requesting removal, having organized records, such as bank statements and a timeline, often makes the difference between a court granting removal and a judge deciding the evidence falls short.
Removing a dishonest executor addresses who controls the estate going forward, but it does not automatically return what was already taken. Beneficiaries can pursue a separate claim for breach of fiduciary duty to recover misappropriated funds or property, along with an accounting to trace exactly where estate assets went. Our estate and guardianship litigation team regularly handles these claims alongside removal proceedings, since the two issues are often resolved in the same case.
Litigation against the executor may proceed under the theory that they violated the fiduciary duties owed to the beneficiaries. The executor may be personally liable for any losses caused by their fraud. Courts weigh account records and transaction histories when deciding whether a breach occurred.
Estate fraud cases often involve family members who are grieving while also trying to protect an inheritance, which makes these disputes both emotionally and legally difficult. Our attorneys focus on Texas estate and probate law, and we work to gather the financial records and testimony needed to prove fraud clearly to a court. We keep clients informed at each stage of the case, from the initial review of estate records through any hearing on removal or recovery of assets.
Generally, any beneficiary, heir, or other interested party with a financial stake (otherwise known as standing) in the estate can file a claim. This includes people named in the will, as well as heirs who would inherit if the will is set aside. Even a beneficiary named in an earlier version of the will may have standing if a later version is being challenged.
Deadlines vary depending on the specific claim, but claims for fraud and breach of fiduciary duty generally must be filed within four years under Texas law. That deadline can be delayed under the discovery rule if the fraud was not reasonably discoverable when it happened, so the exact starting point depends on when a beneficiary knew or should have known about the misconduct. Because these timelines are fact-specific and can run out faster than expected, it is best to have your situation reviewed as soon as you suspect a problem.
In most cases, no. Even if every beneficiary agrees that the executor should be removed, only a probate court has the authority to remove them, and the request must be supported by evidence of one of the statutory grounds for removal. An informal agreement among family members carries no legal weight until a judge signs an order.
If you believe an executor, agent, or family member has committed fraud against a loved one’s estate, waiting can make it harder to trace the assets’ whereabouts. At Ford + Bergner, LLP, we can review the estate’s records, explain your options, and take the steps needed to protect your inheritance. Our team is ready to discuss your situation and outline the next steps.
Call (713) 260-3926 or fill out an online contact form to talk with our team about your case.
