After a loved one dies, you may begin reviewing financial records and notice something unexpected. Investment accounts may show large losses, unusual transactions or recommendations that do not seem consistent with your loved one’s goals or financial situation.
If you discover possible signs of fraud after a loved one’s death, you may question whether anyone can still pursue a claim. In many situations, death does not automatically prevent the pursuit of a financial fraud claim. Whether a fraud claim exists will depend on what happened and how the losses occurred.
What you may discover when reviewing financial records
You may not have had access to all of your loved one’s financial records while they were alive. As a result, concerns may not appear until you begin reviewing accounts after death. Some of the issues you may find include:
- Unexpected investment losses
- Unusual withdrawals or transfers
- Account activity that appears inconsistent with your loved one’s goals
- Recommendations that seem unusually risky
- Transactions that no one in the family knew about
In some situations, your loved one may have relied heavily on a trusted advisor. In others, important details may remain hidden until someone takes a closer look at the account records after death.
Who may be able to pursue a claim
If you discover possible signs of fraud after a loved one’s death, you may assume you can pursue a claim as a beneficiary. In many situations, however, the claim belongs to the estate rather than any individual family member.
That means the executor will usually handle issues involving possible financial losses. Whether the concern involves investment fraud, unauthorized trading or other financial misconduct, the estate may be the party responsible for pursuing any claim that survives the investor’s death.
What this may mean for families
Discovering possible fraud after a loved one’s death can be both costly and emotional. You may need to review account records while also handling estate responsibilities and coping with a loss.
Not every investment loss points to misconduct, however, and not every unusual transaction supports a legal claim. At the same time, an investor’s death does not automatically prevent efforts to seek accountability for possible financial misconduct. A financial fraud claim does not always end when an investor dies. In some situations, families may still have a way to pursue accountability and recover losses.