Received estate distribution but not an heir, what are my options?

Question

I was listed as an heir in an estate and received around $60,000 over four distributions across four years; the last distribution was two years ago. Recently, I discovered through DNA testing that I am not actually an heir. The estate is not finalized yet, and I have contacted the executor about the DNA results. The executor requested me to keep quiet until he speaks with the attorney. I am really distressed by the idea of having to repay the money and possibly file for bankruptcy. Given these circumstances, what options do I have?

Timothy Denison · Answer

Don’t do anything until or unless you are contacted about it.  You may not have to repay the money at all.

James L. Arrasmith · Answer

Your situation involves a complex interplay of probate law, unjust enrichment principles, and potential statute of limitations defenses. The executor's request for discretion is strategic while legal counsel evaluates options, but you should consider consulting your own attorney immediately rather than waiting for the estate's legal team to determine your fate. California has specific laws governing mistaken inheritance distributions, and the four-year timeframe may provide some protections under certain statutes of limitations, though these vary based on the precise legal theories that might be applied. 
 
The fact that you received the money in good faith without knowledge of the DNA mismatch is important and may strengthen your position. Your attorney might explore several options: negotiating a structured repayment plan, seeking a compromise settlement for less than the full amount, asserting technical defenses related to timing, or determining if the genetic evidence itself might be challenged. Additionally, bankruptcy protection remains a last-resort option should other avenues fail, though Chapter 13 reorganization would likely be preferable to Chapter 7 liquidation if your financial situation permits. 
 
Time is of the essence in this matter, as your actions now may significantly impact available legal options. While bankruptcy presents one path forward, exploring settlement options before reaching that point is advisable, as many estates prefer partial recovery to prolonged litigation. Document all communications with the executor, avoid making any written admissions, and refrain from spending any remaining inheritance funds while this matter resolves. Most importantly, secure independent legal representation with experience in probate disputes to ensure your interests receive proper advocacy during this challenging circumstance.

Q: Received estate distribution but not an heir, what are my options?