According to the Federal Bureau of Investigation, elder fraud results in an estimated $3 billion in losses for seniors annually. The elderly have always been at the risk of being scammed, but this risk has grown exponentially during the pandemic due to an increased focus on estate planning. For this reason, you need to be aware of what estate plan scams are, how to protect possessions, and how these scammers operate.
You can protect and educate your aging loved ones by explaining the common types of estate plan scams. The rule of thumb is that if it seems too good to be true, it most probably is!
Types of Common Estate Plan Scams
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Fictional Help
If you’re being contacted out of the blue and asked to sign documents that will supposedly stop the foreclosure, you might be transferring your home to the scammer.
- DIY Wills Scam
Another scam is attorneys or telemarketers trying to sell paperwork for homemade DIY wills. These wills are poorly drafted, full of errors, and legally invalid.
- False Bailout
The scammer may ask you to sign a transfer deed while ensuring that your house’s ownership will be transferred back to you after a specific period. What happens is that you unknowingly sign your eviction notice, the house gets sold, and the scammer takes off with the proceeds; you only get to know of it after the new owners move in.
Avoiding Scams and Scammers
How can you avoid being scammed? Here’s how:
- Avoid accepting offers from door-to-door salespeople, especially if they are too pushy. Discuss their proposal with more people, do your research online, and fully understand it before saying yes.
- Never share your personal information with anyone on the phone or online.
- Go online. Search for reviews and ensure the company offering you their services has a credible online reputation.
- Contact your attorney before signing any contract or other legal documents like wills and trusts.
If you or your loved one has been scammed, it is vital to involve proper authorities immediately.
