The Golden Ticket to Preventing Identity Theft and Fraud

THE GOLDEN TICKET TO PREVENTING IDENTITY THEFT AND FRAUD: YOUR ESTATE PLAN

Consider These Identity Theft Statistics*:

In 2019, 14.4 million consumers became victims of identity fraud — that’s about 1 in 15 people.
Overall, 33 percent of U.S. adults have experienced identity theft, which is more than twice the global average.
More than one in four older adults, aged 55 and over, have experienced identity theft.
One in five victims of identity theft have experienced it more than once.
Over 1 million children in the U.S. were victims of identity theft in 2017, costing families $540 million in out-of-pocket expenses.
There’s a new victim of identity theft every 2 seconds.
Children are 51 times more likely to be a victim of identity theft than adults.
Identity theft is the most common consequence of a data breach, occurring 65 percent of the time.
There were 164 million exposed records in 2019, and data breaches increased by 17 percent.
Consumers lost more than $1.9 billion to identity theft and fraud in 2019.

In other words, if your chances of winning the lottery are 1 in 15, as are the odds of being an ID theft victim, we’d all have family, friends, and colleagues who are millionaires. (*Identityforce.com, posted October 28, 2020 by Jennifer Bellemare in Identity & Privacy, Personal.)

How a Living Trust can Protect Your Assets from Identity Theft and Fraud

You likely invest a good deal of time and money into developing strategies to provide for your family and achieve your other estate planning objectives while minimizing taxes. However, to be completely successful, you also must safeguard your wealth against fraud and identity theft.

Many people do not think about estate planning as a major tool to be used to protect their assets from fraud and identity theft, but alarming reports of mortgage fraud and even home theft — where someone posing as you takes a loan out or even sells your own home — is increasing dramatically. Only the savvy know it is wise to use estate planning tools to help prevent fraud and identity theft. As you may know, many people use revocable living trusts to achieve a variety of estate planning objectives, including avoiding probate and managing assets in the event they become incapacitated. Trusts can also be an effective tool for preventing fraud, or at least catching it before too much damage is done. “How?” you my ask. Let me show you.

First, a Trust acts like a barrier between a potential fraudster and your assets, since your assets are titled in the Trust and are not totally dependent on your personal information. This barrier is designed so that, in the event a person obtains your personal information and attempts to defraud you, they will not be able to access the accounts and assets, even though you still have complete control and access to your assets. Think of it like hiding your assets from people who might try to steal them from you, yet you retain complete control of them.

Second, since the Trustee is the only one that can manage and protect the assets in the Trust, the Trust adds an extra layer of protection between you and potential fraudsters or identity thieves. The Trustee — who has authority over the Trust — does not depend on their date of birth, social security number or Government ID to gain access to the Trust assets. Instead, the Trustee not only has to prove who they are, but they must also produce a copy of the executed Trust that shows they are the person named in the Trust as the Trustee. Plus, with a home mortgage, line of equity and new purchase of property, the lender often requires the Trustee to provide a Trust Certification signed by the Trustee in front of a Notary, or even an opinion letter from a lawyer indicating that the Trustee is who they say they are and they have the ability to encumber the property.

Finally, some people may opt to appoint an experienced professional trustee. Doing this also ensures that an extra set of eyes evaluates any contemplated investments or distributions of the trust’s assets. In addition, a professional trustee will be able to monitor the assets closely and respond quickly to any suspicious activity. However, before you establish a living trust, be sure to consult your estate planning attorney to determine whether it is the best plan for you so they can tailor the trust to meet your specific needs.

Safeguarding Yourself in Other Ways

Thanks to modern technology, identity theft is now so pervasive that people’s credit cards, debit cards, and bank accounts are routinely compromised, created, emptied, or used without their permission. Typically, identity theft services available to you are limited to detection — not prevention. Prevention advice is usually limited to not sharing your personal information. However, this advice is inadequate to protect your assets. Your personal information is already with your bank, doctor, dentist, credit card company, and financial planner. As a result, all of these entities support staff have your personal information as well. Your personal information can also be compromised by internet and phone scams as well as other hi-tech schemes.

USA.gov suggests these tips to keep in mind to help protect yourself from identity theft:

Secure your Social Security number (SSN). Do not carry your Social Security card in your wallet. Only give out your SSN when necessary.
Do not share personal information (birthdate, Social Security number, or bank account number) just because someone asks for it.
Collect mail every day. Place a hold on your mail when you are away from home for several days.
Pay attention to your billing cycles. If bills or financial statements are late, contact the sender.
Use the security features on your mobile phone.
Update sharing and firewall settings when you're on a public wi-fi network. Use a virtual private network (VPN) if you use public wi-fi.
Review your credit card and bank account statements. Compare receipts with account statements. Watch for unauthorized transactions.
Shred receipts, credit offers, account statements, and expired credit cards. This can prevent “dumpster divers” from getting your personal information.
Store personal information in a safe place.
Install firewalls and virus-detection software on your home computer.
Create complex passwords that identity thieves cannot guess. Change your passwords if a company that you do business with has a breach of its databases.
Review your credit reports once a year. Be certain that they do not include accounts that you have not opened. You can order it for free from annualcreditreport.com.
Freeze your credit files with Equifax, Experian, Innovis, TransUnion, and the National Consumer Telecommunications and Utilities Exchange for free. Credit freezes prevent someone from applying for and getting approval for a credit account or utility services in your name.

I also recommend these two things:

For any email or other account that you regularly use like PayPal and Facebook, make sure to turn on the two-factor authentication. It is easy, and yes, it has prevented someone from hacking into my account before.
Invest in Identity Theft Protection Plan. A few years ago, I recognized that identity theft was now an everyday issue for thousands of victims. So, I decided to invest in identity theft protection.

There are lots of reputable companies who provide all sorts of levels of services to monitor and help recover your identity if it is stolen. You can even have that protection provided for your children! However, you absolutely want to make sure to look at all the details, coverage amounts and services included with the plans offered by a company. Why? When my Dad’s identity was stolen several years ago, my mom spent countless hours on the phone with the bank, credit card companies, social security, the police, etc. Plus, they were still being held accountable for the money that had been spent under my Dad’s name! I knew if that ever happened to me, I would not have the time to sort it all out, and I most definitely did not want the added stress. So, I signed-up several years ago with an Identity Theft company to monitor things like my credit reports, property purchases, bank accounts, etc.

Recently, we received an alert from our identity protection provider that someone had pulled a credit report for my husband, and they were attempting to open a credit card. Our identity theft monitoring company confirmed someone used my husband’s date of birth and his social security number. While we were on the phone, the company contacted the credit company, and they confirmed in fact the card was open and active, but thankfully, it had a zero balance. It was picked-up on so quickly by the company, it saved us from major problems (although there is still a current attempt out there involving someone getting credit to buy a cell phone under my husband’s name…but our identity theft company is working on that, too!) If you think you have been a victim of identity, USA.gov recommends that you report the identity theft to the Federal Trade Commission (FTC) online at IdentityTheft.gov or by phone at 1-877-438-4338.

For more information on Revocable Living Trust as an estate planning tool, email us at legalteam@twestateplanning.law and request your free guide.

Celebrating Life with Shayla

Managing Partner Stacey Walters was blessed with a beautiful angel for 10 years. Her daughter Shayla, who was born with a heart defect, unexpectedly suffered a cardiac arrest at 5 months old, leaving her severely disabled. In April 2018, Shayla unexpectedly gained her angel wings and left Stacey and her family on this earth. While Shayla forever changed their family’s life, she taught Stacey the meaning of selfless love and that we are never promised tomorrow.

Shayla’s story forms the pillar of our law practice: We are all going to leave this earth, but if we aren't prepared for the unexpected, the people we hurt the most are the ones we love the most! It is too important not to have a plan in place, and everyone needs an estate plan for that unexpected time, but not just any plan – the perfect plan that easily ensures your final wishes are met while relieving the stress and burden on your family when you are gone!

At Thomas Walters Probate and Estate Planning Attorneys, we build lifetime relationships with our family of clients. We not only help ensure our clients have a current and perfect plan in place, but we give them peace of mind knowing both they and their family can always call on us a trusted advisor when the unexpected happens.

Upcoming Estate Planning Events

COMING SOON...

PLAN, PREPARE, PREVAIL: 100% READY FOR LIFE’S UNEXPECTED

DID YOU KNOW THAT IN 2020, MORE THAN 70% OF AMERICANS HAVE FAILED TO PREPARE FOR THE MOST IMPORTANT EVENTS IN THEIR LIFE? IMAGINE ALL OF THE STRESS, ANXIETY AND EXPENSE THAT ENSUES WHEN UNEXPECTEDLY TRYING TO NOW PLAN IN THE MIDDLE OF CHAOS.

Stacey Walters will be launching virtual seminars beginning in 2021 that will put you at the top of the preparedness class! Stacey knows first hand what this looks like and is determined to make a difference, one person at a time!

Stay tuned for details to make sure you are not preparing to fail yourself and your family during difficult times!

“By failing to prepare, you are preparing to fail.” Benjamin Franklin

See our ad and article in the March 2021 issue of Senior Lifestyles!

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Client Testimonial

“Stacey — I am very happy w/ the entire procedure, from start to finish. I really appreciate your thoroughness in attending to every detail, your patience and kindness, and importantly, your skill and knowledge in this area of law. I had no idea of the complexities involved and the work that was required to reach your level of expertise is not lost on me. I feel very reassured that my loved ones will be protected from a lengthy probate saga. I have recommended you to friends and will continue to do so. Thanks immensely.”

Mike Campa

Durham, NC

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Stacey Walters

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