For some families, estate administration is simply a technical process. They file papers with the courts and complete the necessary steps to carry out the decedent’s last wishes. For other families, estate administration is a much more challenging process.
Beneficiaries may have questions about the actions of a personal representative or trustee. They may feel concerned about the conduct of the testator in their last years of life. In such cases, what could be a calm and amicable process becomes contentious. Family members may damage their relationships with one another by fighting over the estate. They can also diminish whatever one inherits by generating extensive estate administration expenses through probate litigation.
In cases where there are disputes, resolving them thoroughly and promptly is usually in the best interests of everyone involved. A forensic accountant could play a key role in helping resolve disputes regarding an estate.
What does a forensic accountant do?
A forensic accountant is a financial specialist whose training and professional experience help them analyze financial records. They use their insight and experience to uncover signs of misconduct and irregularities in financial documents. A forensic accountant could help identify signs of embezzlement by a fiduciary, for example.
They can identify discrepancies in financial records, quantify the amount of resources diverted from the estate and help connect those questionable transfers to a specific individual. Forensic accountants can also trace income or assets. They can use financial records to determine where resources ended up after questionable transfers occurred.
Forensic accountants can also look into activity that occurred before the testator passed. For example, they could help prove claims of undue influence by showing that someone pressured or coerced the testator into making multiple sizable transfers to them during their golden years. Their services can also quantify the negative impact that misconduct or incompetence has had on the estate.
A forensic accountant’s insight and the financial reports that they provide can help people navigate a will contest. Their testimony could assist with efforts to remove a fiduciary and replace them with someone who is more trustworthy or competent. They can also help validate claims that a personal representative or trustee consistently upheld their responsibility to the estate and its beneficiaries.
Discussing conflicts surrounding estate administration with someone who understands the law can help beneficiaries and personal representatives navigate challenging issues. The assistance of skilled professionals, including forensic accountants, can play a key role in the resolution of certain probate disputes.