Month: September 2023

How to Protect Yourself from Executor Fraud

The role of an executor of a will is a position of trust. It is someone who is responsible for managing and distributing the estate of a deceased person according to their wishes. Unfortunately, there have been cases where an executor has abused their authority and committed fraud, leaving the beneficiaries with nothing. This is known as executor fraud, and it can be devastating. In this blog post, we will discuss what executor fraud is, how it happens, and most importantly, how you can protect yourself from it.

What is Executor Fraud?

Executor fraud can take many different forms, from misappropriating funds to forging documents. The most common form of executor fraud is when the executor manipulates the will to their advantage. For example, they may add a clause to the will that gives them a larger percentage of the estate than agreed upon or cut out certain beneficiaries altogether. They may also sell off assets for less than their value, pocketing the difference.

How to avoid it

In many cases, the beneficiaries are not even aware of the fraud until it is too late. They might not know the intricacies of estate law, and so they trust the executor to carry out their loved one’s wishes. Sadly, this trust can be misplaced. It is crucial that beneficiaries are aware of the warning signs of executor fraud, such as a sudden change in the executor’s behaviour, a lack of transparency, and an unwillingness to provide financial statements.

One of the ways to protect yourself from executor fraud is to appoint an independent executor. This is someone who is not related to the deceased or the beneficiaries and has no stake in the outcome of the will. Appointing an independent executor can help avoid conflicts of interest. If an independent executor is not available, beneficiaries can also ask for an accounting of the assets and liabilities of the estate.

Another way to protect yourself is to monitor the activities of the executor. Beneficiaries should request regular updates on the estate’s distribution and scrutinize any suspicious transactions. It is also advisable to obtain legal representation early on, allowing them to help navigate through the complexities of estate law.

Even with the best of precautions, executor fraud can still happen. In case of any suspicions, beneficiaries can contest the will in court. However, this can be costly and time-consuming, which is why it is crucial to be vigilant from the start. Beneficiaries should know their rights and be aware of any irregularities in the will or the conduct of the executor.

Conclusion:

Losing a loved one is already a difficult time, but becoming a victim of executor fraud can make it even worse. The key to protecting yourself from executor fraud is to be proactive. Beneficiaries should educate themselves on the warning signs, monitor the executor’s activities, and seek legal advice when necessary. Appointing an independent executor can also greatly reduce the risk of any conflicts of interest. With these measures in place, beneficiaries can ensure that their loved one’s wishes are carried out honestly and fairly.

If you are interested in learning more about anything raised in this blog, contact our litigation lawyers today.

This is general information only and does not constitute legal advice.

If you or someone you know would like more information or require advice about anything raised in this article, please contact us on (07) 5458 6855 or email mklein@kleinlegal.com.au

Understand your Building Contract before signing it

A written contract for a new home build is a no-brainer. When there’s a significant chunk of change on the table and a number of things that can go wrong along the way, it’s only natural that the parties to the agreement will want their rights and obligations evidenced in writing and to safeguard themselves with certain protections. But what happens when you do not understand the terms of your building contract? It’s great to have your contract in writing, but its also important to understand the terms of the contract, how the terms are administrated and what happens if things go wrong.

Contract Terms

A construction contract is a legally binding document, and its terms and conditions can have significant legal consequences.

The majority of disputes arise when there is a misunderstanding between the builder and homeowner because the contract terms are poorly documented, or the parties simply do not understand them. It’s important for both builders and homeowners alike to have clear, and complete understanding of the terms of the contract to avoid disputes arising throughout the course of the build.

Contract Reviews

How can you safeguard yourself? Easy – ask the experts! It is never a poor choice to err on the side of caution and seek advice from a solicitor prior to entering into a building and construction contract. A contract review can help identify any potential issues that could arise or result in financial risks and potentially save you from costly disputes or legal proceedings down the track.

Should I have a solicitor review my contract before signing?

A contract review is likely to help you avoid unnecessary disputes, having armed you with the knowledge and understanding of your rights and obligations under the contract. A contract review provides an opportunity to:

identify any errors in the scope of works, plans or specifications;
identify any ambiguities or inconsistencies in the terms;
ensure that the builder is complying with Schedule 1B of the QBCC Act 1994;
ensure that terms such as liquidated damages are a genuine pre-estimate of loss which may be suffered by you if the build exceeds the completion date;
understand whether the contract you’ve been provided is the right contract for the job;
whether any special conditions or unusual terms have been included in the contract which should not be agreed to;
understand the build process based on the contract;
receive plain English advice about what the terms mean to you;
understand the risks you are facing.

Reviewing, negotiating and amending a building and construction contract prior to entering it is the best deterrent for later costly disputes. Chances are, if you’ve taken the time to understand your contract, your solicitor will have provided you with valuable advice which can prevent cost overruns, delays, unexpected costs and disputes.

Next Steps

If you’re a homeowner looking to enter a building and construction contract, or if you’re a builder and you’d like a review or better understand your contract, contact one of our experts today for a contract review. Klein Legal is able to provide you a plain English explanation as to your rights, obligations and any risks or protections that arise out of the clauses of your contract.