An individual’s assets include all their investments, cash, land, and other possessions. When an individual passes away, their estate is created, and the management of these assets is handled by appointed estate managers. More often than not, estate management encounters various challenges, including intricate financial and legal technicalities. An estate’s financial landscape is largely veiled, and lawyers, litigants, and other finders of fact must dissect the landscape to identify the heart of the financial management issue. Therein lies the critical role of forensic accounting.
What Is Forensic Accounting?
Forensic accounting is a specialized discipline that uses accounting principles, investigative skills, and auditing processes to enhance fraud detection in organizations. Forensic accountants are financial detectives who meticulously peruse financial records to uncover any discrepancy that financial managers often try to hide.
In estate cases, forensic accountants are responsible for the following:
1. Examine, Evaluate, and Interpret the Money Web
Forensic accountants uncover financial management in estates by unraveling the money web, which is a process that entails a careful examination, evaluation, and interpretation of complex financial transactions and documentation involved in the said case.
2. Following the Paper Trail
Forensic accountants also track the paper trail to identify patterns and point out any inconsistencies in financial documentation in the estate. The process starts with the forensic accountant pointing out any unusual activities, including inflated expenses, odd transactions, and sudden changes in spending.
3. Studying Manipulation Techniques
Forensic accountants also study manipulation techniques that executors can use to hide their fraudulent acts. The process involves an effort to understand the estate’s context and the external elements that often impact its finances.
4. Serving as an Expert Witness
Forensic accountants also serve as expert witnesses in trust and estate disputes. As expert witnesses, forensic accountants provide their findings and valuation opinions, which are substantial in determining financial mismanagement in estates.
Protect Your Family’s Inheritance
Essentially, forensic accountants assist in detecting financial discrepancies during estate disputes by unraveling the money web, tracking the paper trail, and unearthing all possible manipulation techniques that estate managers use to hide their fraudulent acts. The Williams Litigation Group has significant experience in resolving estate disputes. Contact us today to learn more about our services.