The Expert Podcast

In 2024 and beyond, probate fraud or family law fraud has become the fastest-growing type of scam in the financial services industry. What does that mean? Anytime there is a family event, such as a divorce, a death in the family, someone going into a conservatorship, or moving into long-term care, other relatives or parties in the family may view it as an opportunity to extract money from the family.

How does this work? In prior generations, younger family members were able to build up wealth and money through work, the economy, and their careers. However, the economy has changed, and now generations like Gen Z, Millennials, and Gen X are struggling to build wealth. They face challenges in buying homes, saving money, dealing with high inflation and insurance costs, and finding stable, well-paying jobs. In contrast, older generations, such as Baby Boomers, have accumulated wealth during a different economic period.

The wealth saved by these older generations, often passed down through probate, has become a tempting target for the younger generation. They don't want to wait until someone dies to access the money, or, if they do, they don’t want to risk not receiving as much as they expect. As a result, they may look at family events as an opportunity to divert money to themselves, even if they don’t deserve it. For instance, after someone dies, assets might be transferred before the will goes through, or in cases where someone is aging, relatives may take money and assets even before the person passes away.

This issue becomes even more prominent in cases of divorce. A spouse in a divorce may transfer assets to themselves in advance to avoid sharing them with the other spouse. Since the relationship is already contentious, with both parties already in conflict, some individuals feel justified in trying to hide or divert assets. They may create fake bank accounts, hide assets, or reduce their reported income to lower the amount they’ll need to pay in spousal maintenance or child support.

If you’re in a situation involving a major family event, it’s wise to seek advice. Consider doing a consultation, using the link below, getting legal advice from an attorney, or researching assets thoroughly before deciding what assets genuinely belong to you.