A Financial Forensic Specialist May Be Better Qualified to Assist Attorneys in Fraud and Irregularities in Trust and Estates

by David V. Hanzich CPA MBA ABV CFF CVA CFE CGMA

The transfer of wealth from the “Baby Boomer” generation to their beneficiaries will be very significant in the coming years.  There also has been an increase in Fraud and Irregularities related to the management of trust assets by Trustees and other Fiduciaries of trust assets.  The services of a fraud examiner/forensic accountant are often engaged to provide the following services related to Trust and Estate financial activity:

·         Complex tracing of cash and investment transactions

·         Complete accounting of the trust’s assets and expenditures over a number of years

·         An appraisal of trust assets to include businesses

·         Analysis of potential asset misappropriation to include complex tracings

·         Digital forensic services to include data extraction from hard drives

 

For assistance with estate financial matters, the attorney should consider using a qualified forensic accountant.  Our firm has provided services in many Trust and Estate matters involving complex controversial financial issues.  Some of these services are similar to fraud examinations where tracings of bank transactions and analysis are required in order to identify possible diversion of assets. This could also include a detailed review of bank and investment statements, cancelled checks, wire transfers, deposit slips and other source documents. 

Trustees and attorneys normally engage traditional accountants for their tax compliance services and often incorrectly assume that the tax accountant is qualified to provide forensic services. However, there are stark differences between traditional tax accountants and forensic accountants as follows:   

 

·         Forensic accountants are trained in many financial disciplines and have obtained other professional designations such as the Certified Fraud Examiner (CFE) or Certification in Financial Forensics (CFF) or business valuation certifications such as the Certified Valuation Analyst (CVA)

·         Forensic accountants have expertise and experience in other areas of business services such as business appraisals, due diligence, bankruptcy, fraud examinations, and assessment of business economic damages that may apply in your case

·         Forensic accountants are more likely to have qualified as an expert in a court of law and have extensive experience providing expert testimony regarding financial matters during deposition or at trial before a judge or jury

·         Most forensic accountants bring to the table a background in auditing and tax or experience as a former officer or manager of a corporation

·         Forensic accountants are good communicators and are prepared for litigation and controversial engagements

Mr. Hanzich has worked on over 500 civil and family law cases and has testified over 100 times, producing positive results for our clients.  For your next controversial Trust and Estate matter, consider hiring our firm to provide competent forensic services and litigation support.  Call us to discuss your case.  We can help you identify the scope of the work needed and, for most cases, give you a general idea of the cost for our services. There is no case too small.