Thieves and scammers are increasingly skilled at devising ways to swindle seniors out of their life’s fortunes, according to a recent article from the Hendersonville Standard, titled “Protect yourself and your loved ones from scammers and opportunists.” Sadly, we must worry about lonely grandparents being targeted by online romance scams. However, this is a real threat today. Fortunately, an estate plan created by an experienced estate planning attorney can provide strong guardrails against fraud and theft.
A living trust is one of the most effective ways to protect assets. Unlike a will, which doesn’t become effective until after a person dies, the living trust becomes active immediately upon its execution. A trustee or co-trustee can manage and protect assets in the trust while the original owner is still living. This is especially important in the case of incapacity.
Trusts help in multiple ways:
- The trustee or successor trustee can take over if necessary.
- A professional fiduciary may be named if no family members are willing or able to serve.
- A trust protector or trust committee can be created with the authority to replace or remove a trustee without needing to bring the matter to court.
- Amendments may be made if needed to qualify for Medicaid or gain tax advantages.
There are many different types of trusts. Therefore, you should speak with a qualified estate planning attorney to determine which is the right one for your situation.
There are other ways to protect vulnerable people from scammers. Their bank and financial advisors should have the ability to add a trusted contact—usually an adult child—to their accounts and ensure that they are alerted in case of large or frequent withdrawals.
Have a Power of Attorney and Medical Power of Attorney created while the parent is still competent. These documents allow a trusted person or people to step in and handle your legal, financial and health matters if the parent is unable to.
A smart step to take: Use the Social Security Advanced Designation tool to name a trusted person as a representative payee and do this before it’s needed.
If you suspect foul play, have your Social Security numbers frozen with all three credit bureaus, including Equifax, TransUnion and Experian. This can be done to prevent further identity theft.
A scam is always one click away in today’s world. However, having the right legal tools in place before they are needed will protect you and your loved ones. Talk with your estate planning attorney today to protect your tomorrow.
Reference: Hendersonville Standard (May 29, 2025) “Protect yourself and your loved ones from scammers and opportunists”
