"Missing" Estate Assets

Washington State. I'm the court-appointed personal rep of an estate. I've traced assets that went "missing" five years ago and found that they were deposited in or transferred to a family member's personal accounts and personal safe deposit box. These transactions took place while I was the POA for the then-living decedent who was residing in a nursing home, was mentally unstable, and physically disabled from a stoke.

Negotiable instruments and contracts that were drawn up to carry out the transfers were signed by the legally blind decedent but filled out by the family member. I was the POA of record when all of this was taking place. I wasn't consulted about any of this activity. After death, the family member claimed that the estate was insolvent. Have it in writing. The estate is far from insolvent as it turns out.

When confronted with our evidence that the estate was far from insolvent, the family member claimed that "whatever happened, happened according to the decedent's wishes."

It's quite obvious the family member stole a significant amount from the estate but what proof, short of a letter from the decedent stating that the money was stolen, would be needed for the courts to rule?

Thanks in advance for your opinion. - Sleepless in Seattle

I'm curious about how you're going to get a letter from the decedent? Or do you mean that you have some written statement from before the decedent became the decedent?

If the assets were transferred by fraud, undue influence, etc. before death, the representative of the estate can bring an action to recover the assets. However, this litigation may be expensive, and, further, may be fruitless if the family member has spent/hidden/transferred the assets. Do you have any idea about where the assets are now?

Was the decendent formally declared incompetent prior to the transfers?

No, I don't have a letter. Was being facetious. Maybe I could do a Séance to get one, though! LOL

Was there any fraud, undue influence, etc? Don't know. What consitutes proof of undue influence, elder abuse, misappropriation, etc.? Decedent couldn't SEE what she was signing.

Was decedent declared incompetent? Not that I know of. Nurse reports during all shifts were pretty unanimous that she was unable to make decisions most days.

How do I prove what the family member did and if a then-living blind decedent knew what the family member was doing? She couldn't SEE. That's the question.

Hope that helps.

I've traced assets that went "missing" five years ago and found that they were deposited in or transferred to a family member's personal accounts and personal safe deposit box.

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What were the assets and what was their value? Do you know if the assets are still in the family member's possession? Does the family member who obtained them have money?

It's going to be a battle ... its really going to depend on whether or not the assets which were transferred are worth the litigation costs. You've got some good evidence (nurses, inability to see, etc.; existance of the poa)., but if the decedent was not formally declared incompetent, she still had power to transfer her assets. If the decedent and the family member were close ... a jury might buy that the transfers were within her wishes.

Cash assets are worth about $200,000. This doesn't include safe deposit box contents which were significant - old, uncirculated silver certificates, coins with heads on them from the 1700s and 1800s (checked on the value of these and there were lots of them - range anywhere from $200 to $15,000 a piece), $40,000 more in loose cash, etc.

Not sure where the assets are . . . need court orders to find out. Family member has two condos valued at approximately $500,000 cumulatively. Not sure how much equity there is. Do know family member borrows against these properties alot. Family member and spouse hold no or low paying jobs. Has been this way for years.

Not sure if they were close. The last unpleasant encounter I had with family member and spouse was when the police were called (a regular Springer episode for me, a person who's def not accustomed to those types of scenarios LOL) to handle a domestic dispute that resulted in the then-living decendent to kick the free-loading family member out of her house.

Decedent has had a long history of mental health issues. She should have been deemed incompetent long ago but the medical community wasn't willing to stick their necks out that far and make it so even though they talked extensively with me about shock therapy and admitting her to Western State Hospital. Apparently, she hadn't killed herself or someone else, could tell them her name, what day it was, where she was, and the place she had just come from. Done deal - competent. Shame on them!

She was admitted to a mental institution for a couple weeks after being discharged from the hospital after suffering a stroke. After that, meds for depression and anxiety were prescribed.

Do you have any way of knowing whether this other person could have gotten a power of attorney also (besides yours)? You can consult with a family law attorney to find out what evidence you would need to charge this person with elderly financial abuse (law may require that person to provide an accounting with receipts of how the money was spent for that persons care and not kept selfishly for himself) but you would also need to be concerned about a statute of limitations to see if that applies here.

As personal rep you can also order copies of state and federal tax returns for the last year she was alive and few years before then and also order copies of her bank account statements and cancelled check copies.

DANDY DON IN OKLAHOMA ([email protected])

I'm not well versed in probate law. I think that you need to have a consult with an experienced probate attorney to discuss the potential claims of the Estate against this family member. You mentioned that the property transfers took place 5 years ago? When did the decedent pass away?

You may be up against statute of limitations issues. You should seek legal counsel quickly, in my opinion.

Decedent died 7 months ago. When transfers took place, I was the POA. Family member got POA four months afterwards the assets moved.

Family member refused to provide any accounting or records. After 7 months of painstaking and time-consuming work, I've got those now. Know that assets were stolen and have evidence to back it up. Asset transfers were deposited into family member's personal accounts/contracts.

Will check out the statute of limitations. Thanks for the heads up.