Embezzlement in trust occurs when an individual steals from the family trust. Unfortunately, this problem is more common than you might think. Such embezzlement is considered to be a crime and is punishable by law. It involves the misappropriation of funds belonging to the trustee or beneficiary.
If you know someone has embezzled from their or your family’s trust and is committing fraud, the best way to deal with this is by hiring a Queens or Brooklyn estate lawyer or a litigation attorney. They can help you take legal action against them.
What Is Trustee Embezzlement?
Before discussing how to deal with embezzlement in trust, it’s essential to understand what it means. When building a family trust, one person is appointed as the trustee by the trustor or beneficiary. The trustee is responsible for managing the trust and acting in the beneficiary’s best interest.
Unfortunately, it is common for trustees to take advantage of their position and directly or indirectly steal funds from the family trust. Since they can’t take funds out directly, they will devise loopholes to direct the funds to them in conspicuous ways.
What to Do If a Trustee Is Stealing From the Trust?
If you suspect the trustee is stealing from the trust, you must first ask them for a copy of the accounting records of the family trust. The financial reports and records will then need to be analyzed to see if there is any fraudulent behavior in the trust, such as changes in the true assets of the family trust.
It would be a good idea to have a finance professional look at these records to check for discrepancies. If there are any such discrepancies or misappropriation of funds, you can get a family attorney from Brooklyn or Queens involved to help you. The lawyers will also look for any signs of fraudulent behavior on the part of the trustee. Most often, this is not evident as trustees typically transfer loans to themselves or their friends from the trust. The lawyers would look for any transactions the trustee made that may benefit them.
They will then charge the trustee with fraud and breaching the family trust. The accused will likely be removed from the family trust or surcharged. The goal of seeking legal action for embezzlement in a family trust is to remove the trustee and recover the lost funds.
When to Involve Legal Help?
From the moment you suspect embezzlement, you should get in touch with family law services in Queens, such as Ledwidge and Associates. It’s essential to look for a trust litigation company that has experience in dealing with similar cases as yours. Ledwidge and Associates are experienced Litigation lawyer Queens who have been helping families with estate planning and trust issues for years.
Final Words
Need help determining embezzlement in trust and have questions about how to detect misappropriation of funds? Ledwidge and Associates are only one call away. Our professional Probate lawyer Brooklyn can help answer any questions you might have and provide you with the right guidance.
Visit our website today or give us a call to arrange a consultation.
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