Estate planning does not commonly bring up thoughts of annoyance and stress for most people. However, you may sometimes encounter scams that jeopardize your financial and mental well-being while writing these documents.
Learning about this can help you shed light on some deceptive practices that you might encounter during estate planning.
Phantom inheritance trick
One issue to be wary of involves the introduction of fake heirs into your estate plan. Scammers might exploit a lack of vigilance by slipping in unknown individuals as beneficiaries, diverting assets away from your loved ones. A review of beneficiaries and periodic updates can act as a safeguard against these phantom inheritance schemes.
Fake charitable organizations
Another deceptive maneuver involves false philanthropy. Some individuals may attempt to convince you to give a significant portion of your estate to a fake charitable organization. Verifying the legitimacy of the charitable entity and consulting trusted financial advisors can stop attempts to exploit you.
Estate planning often involves seeking financial advice. Be cautious of advisors who overpromise or pressure you into investments that seem too good to be true.
Online scams can devastate a person as well, with Americans aged 50 or older losing an average of $17,662 every time an online scam happens as of 2021. Look through the person’s credentials and track record before entrusting them with your financial future.
Bogus legal documents
A particularly dangerous tactic involves the fabrication of legal documents. Scammers may attempt to manipulate your estate plan by introducing counterfeit wills or trusts. Regularly reviewing your legal documents can safeguard your assets from falling into the wrong hands.
It is important to navigate this terrain with a keen eye for potential scams. By staying cautious, you can ensure that your legacy remains intact for your heirs.