Debunking the Common Scam Involving Lawyers Requesting Payment Before Release of Inheritance

Have you ever been approached by a lawyer demanding payment before any paperwork can be started to release money from an inheritance? This situation may seem common, but it is actually a widely recognized scam. Let's dive into what is happening and how to avoid falling victim to it.

Understanding the Probate Process and Estate Expenses

In the United States, the probate process and the distribution of assets from an inheritance typically involve specific rules. EXPENSES related to settling the estate and distributing assets are commonly paid FROM THE ESTATE. This includes legal fees, administration costs, and other related expenses.

However, there are some exceptions. In some states, the state inheritance tax might be paid by the beneficiary or the estate. Otherwise, the executor is responsible for ensuring that the terms of the will are honored and all debts and obligations are settled. This includes paying off creditors before distributing assets to beneficiaries.

Why Scammers Request Payment

Scammers prey on the emotional and financial state of people expecting an inheritance. They often make claims that they are the executor of a will or a lawyer representing a deceased individual. Here are some red flags to look out for:

You were approached by the lawyer before you knew about the inheritance. The lawyer has requested payment in advance for legal services. The amount they demand is surprisingly large and unreasonable. They ask for payment in non-standard methods, such as gift cards. The lawyer urges you to keep the transaction confidential. The lawyer is insistent on a fast resolution.

What is the Correct Procedure?

According to the legal system, the executor or attorney appointed by the court is responsible for handling the probate process. Their primary duties include:

Locating and contacting beneficiaries Assessing and paying off any outstanding debts or taxes Notifying all beneficiaries of the proceedings Ensuring that the will is properly executed and followed

These responsibilities are typically handled without requiring upfront payments. The attorney or executor should work on a retainer or payment schedule, not demand payment in advance without a specific service agreement.

Legitimate Practice vs. Scam

A common and legitimate practice is for attorneys to request a retainer to begin their work. The amount of the retainer is based on the estimated time required for the work and the likelihood of collecting money. However, this is a rare exception in the estate administration process.

If you receive a phone call or email claiming to be from a lawyer dealing with an inheritance, be cautious. If the situation seems too good to be true, it likely is. SCAMMERS often take advantage of the emotional state of beneficiaries who are uncertain about the legal process. Take the time to verify the authenticity of any claims and consult with a trusted attorney.

Conclusion

Be wary of anyone who claims to be a lawyer or executor and demands payment before starting work on releasing your inheritance. Verify their claims, ask for proper documentation, and seek advice from professionals to ensure you are not falling prey to a scam. Remember, legitimate legal services should involve a fee agreement and not a demand for upfront payment.