There is no fraud on the community post-death; such a claim that may be made during the divorce to adjust property the "just and right" property division is converted, simply, to a claim for money damages. The Executor should immediately demand return of the Estate's share of the funds and, if he refuses to return them, the Executor has a statutory duty to pursue (file suit against) him for the return of such funds. Failing to pursue those funds is a breach of the Executor's fiduciary duties.
The Executor cannot wait until the surviving spouse's death because, if that occurs after the statute of limitations runs, the claim will have expired. The statute of limitiations is tricky post-death, but, generally, it would be 2 or 4 years statute of limitations depending on the claims. The date the deceased spouse knew about the claim and the date of the Executor's appointment comes into consideration in determining the statute of limitations as well.
The only option regarding evading execution is for the Executor to determine if the surviving spouse is "judgment proof" - meaning, it will cost more to pursue and get the judgment and collect the judgment than can be recovered. If the latter is a fact or everyone is in agreement that it is a fact, then the Executor should get all of the beneficiaries to agree that he or she can abandon such claim and release that Executor from the requirement to pursue it.
You can see there are a lot of complicated issues here and an experienced estate litigator is required to help you or the Executor or both wade through all of them.
I am happy to discuss this further, if you are interested. My number is: (214) 965-9999.
Sincerely,
Kevin Spencer
www.spencerlawpc.com
Answered on Sep 30th, 2016 at 7:58 AM