Updated 4 November 2026
CM Law's Ultimate List: The top 50 FAQs on Administration of Estates #42: Protect Estate from Fraud
An executor may need to deal with unfamiliar creditors, valuable property and beneficiaries they have never met. That creates opportunities for deception. Protecting an estate starts with clear authority, reliable records and independent checks before money moves. Suspicion deserves investigation, but an unusual document or family disagreement is not itself proof of fraud.
What does protecting an estate from fraud involve?
It means taking reasonable steps to safeguard estate assets, verify payment requests and investigate warning signs while administering the estate lawfully. Executors should identify what belongs to the estate, maintain records and report to beneficiaries. They should obtain advice when a claim or transaction cannot be adequately explained.
The NSW executor guide describes the responsibility to identify beneficiaries correctly and manage the deceased’s affairs. A useful starting document is an asset register showing ownership, location, estimated value and the person responsible for each next step.
What warning signs should an executor investigate?
Warning signs include unexplained withdrawals, missing valuables, sudden changes to bank details, inconsistent signatures and demands for immediate payment without supporting documents. A newly discovered will may also require checking. These matters justify questions and preservation of evidence; they do not establish that a particular person has committed a crime.
Keep a dated list of concerns and distinguish what you observed from what someone told you. Record the documents still needed. This helps a solicitor assess the issue without an accusation becoming confused with an established fact.
How should the executor secure assets first?
Locate the original will, notify relevant institutions of the death and take appropriate steps to secure property and valuables. Check insurance arrangements and record who has keys or access. Establish the authority needed before transferring assets, selling property or closing accounts; the requirements differ between assets and institutions.
Photograph valuable items and keep an inventory when collecting them. For jointly owned property, superannuation and assets held through trusts or companies, establish ownership and payment arrangements before treating anything as estate property available for distribution.
How can payment redirection scams be prevented?
Independently confirm payment instructions before transferring estate money, especially where bank details have changed. Telephone the intended recipient using a number already verified or obtained independently. Do not rely on the telephone number supplied in the suspicious message, even where that message appears within a familiar email conversation.
Scamwatch’s guidance on email compromise explains how criminals replace genuine payment details. Keep a written record of the verification call and who confirmed the account. If anything does not match, stop that payment until the discrepancy is resolved.
What checks should be made on creditor claims?
Ask for the basis of the debt, invoices, contracts, account statements and evidence of unpaid amounts. Compare the claim with the deceased’s records and check the claimant’s identity independently. A persuasive demand is not proof of a debt, but an unfamiliar creditor should not be dismissed without proper investigation.
Maintain a claims register recording amounts, supporting material, responses and due dates. If a claim is disputed or the estate may be insolvent, obtain advice before choosing which creditors to pay. Incorrect payments can prejudice genuine creditors and beneficiaries.
How should beneficiaries’ identities be confirmed?
Match the recipient to the person or organisation entitled under the will or intestacy rules, then verify identity and payment details through a reliable process. Additional checks may be appropriate for unfamiliar or overseas beneficiaries. A request to pay someone else should be investigated and properly documented before any transfer.
Explain the verification process early so beneficiaries know what to expect. Send identity documents through a secure channel and share them only with people who need them. Avoid circulating passports, bank details or tax information in group emails.
What records help detect misuse of estate money?
Keep estate funds separate from personal funds and record every receipt, payment, transfer and distribution. Reconcile the transaction record with bank statements regularly. Each entry should identify its purpose and supporting document. A discrepancy becomes easier to investigate when the records show when, why and to whom money moved.
Legal Aid NSW’s distribution guidance explains the obligation to deal carefully with estate property and avoid mixing it with personal assets. Retain invoices and approvals, including records of reimbursements to the executor. A spreadsheet alone does not establish that an expense was legitimate.
Can another person check payments and access?
Where practical, arrange independent review of significant payments and restrict access to banking and estate records. Use strong unique passwords and multifactor authentication where available. Each authorised user should have their own access arrangements. Review permissions when advisers change or someone no longer needs access to the estate’s information.
Agree how co-executors will document decisions and verify transactions. A second check should examine the recipient, entitlement and amount, rather than merely repeat the original instruction. These are practical controls; the arrangements must also fit the grant and bank requirements.
What if a will or codicil appears forged?
Preserve the original document and seek probate advice promptly. Relevant evidence may include earlier wills, the drafting file, witness accounts and genuine signature samples. A person with a legitimate interest may be able to lodge a probate caveat before a grant, but the appropriate procedure depends on the circumstances.
The Supreme Court’s contested proceedings guidance explains caveats and challenges. Do not alter the document or write notes on it. A caveat concerns the grant of representation; other protective orders may be needed if assets are at risk.
What does a real NSW forgery case show?
In Pozniak Estate: Morgan v Reuben [2005] NSWSC 766, the Supreme Court examined disputed wills and a codicil using handwriting evidence and witness testimony. It found forged signatures and established the genuine 1996 will as the deceased’s last will. The case demonstrates why reliable documents and properly tested evidence matter.
Palmer J held that the 1997 codicil had no legal effect and ordered administration with the 1996 will annexed to Kurt Morgan. The judgment also found the deceased’s signature on the 1995 will was forged. These were civil probate findings, not a criminal sentence.
Where should suspected fraud be reported?
Report suspected criminal conduct through an appropriate NSW Police reporting channel and contact the bank immediately if money or account access is at risk. Online fraud may be reported through ReportCyber. A police report does not itself resolve estate ownership, reverse a transfer or replace an application for urgent civil relief.
The NSW Police fraud reporting page identifies reporting options and supporting information. Keep the report reference and copies of the evidence supplied. Tell the estate solicitor what has happened so criminal reporting and protection of estate assets can proceed together.
Contact the financial institution urgently, identify the transaction and ask what can be stopped, recalled or secured. Preserve emails, account details and transaction records. Secure compromised accounts and obtain legal advice about recovery or asset preservation. Acting quickly may help, but it does not guarantee that money will be recovered.
MoneySmart’s response guidance also warns about further scams after an initial loss. Be cautious of unsolicited offers to recover estate money for an advance fee. Obtain advice before communicating with someone suspected of diverting assets or destroying evidence.
What if the concern involves the executor?
A beneficiary should request a clear explanation and relevant estate accounts, identifying the transactions in question. If concerns remain unresolved, seek independent advice about obtaining records, compelling an account or asking the Court for protective orders. Removal or replacement of an executor is a legal remedy requiring an appropriate basis.
Avoid treating delay alone as proof of dishonesty. The Supreme Court’s accounts guidance distinguishes routine record keeping from formal court processes. Focus on missing information, unexplained payments and the risk to the estate, rather than personal disagreements between family members.
Who pays for investigating suspected fraud?
Reasonable administration expenses may be payable from the estate, but investigation and litigation costs are not automatically recoverable in every case. The need for the work, its scope, the executor’s conduct and any court orders matter. Obtain a cost estimate and advice before committing estate funds to substantial contested work.
Ask what evidence the investigation could obtain and how it would change the next decision. A staged review may identify whether specialist handwriting, forensic accounting or urgent court assistance is justified. Keep the engagement and reasons for expenditure with the estate records.
What is Christine’s practical recommendation for executors?
My recommendation is to establish a verification routine before the first significant estate payment: confirm authority, check entitlement, verify the recipient independently and retain the supporting record. When something does not fit, pause the affected transaction and obtain advice promptly. Clear procedures help protect beneficiaries and explain the executor’s decisions.
CM Lawyers can assist with estate administration and disputed documents or payments. Contact Christine Manolakos on (02) 9557 9000 or email lawyers@cmlaw.com.au with the will, grant if available, relevant statements and a concise chronology of the concern.
General information about NSW law as at 4 November 2026, not legal or financial advice. The reported judgment is a real decision; its outcome depends on its facts. Obtain advice about the particular estate before acting.
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