Structure Your Estate To Protect Against Scams
No one in Westchester County wants to think of themselves as easy prey, but statistics reported by the American Association of Retired People (AARP) seem to show that more and more elderly people in the U.S. are falling prey to scammers for a variety of reasons. It is crucial to plan your estate and structure your assets in a way that will protect your assets and ensure you have things to leave your beneficiaries upon your passing. The right Pleasantville attorney may be able to help.
Seniors Are More Susceptible
The data reported by the AARP comes from a recent Federal Trade Commission (FTC) report on fraud in the United States. In 2020, U.S. residents lost around $3.5 billion to scammers and other types of fraud – but in 2024, that figure ballooned to approximately $12.5 billion. While the average loss per person was approximately $415, those over the age of 70 reported an average of $1,000 stolen or obtained by false pretenses. Investment scams, specifically, took a median of $20,000 per person over age 70, while those in their 20s lost an average of $1,551.
There are several different reasons why those over a certain age seem to be more susceptible to these kinds of scams, from lack of familiarity with technology to loneliness. While a small number of scam victims may have emotional or cognitive problems like dementia or agoraphobia, most who fall prey to these boondoggles are generally of sound mind; rather, their life experience may mean they are more credulous or simply afraid to tell someone no.
Protect Yourself & Your Family
While the best defense against fraud is simply to be cautious and do one’s research, it is also possible to structure one’s estate planning so that a person with malicious intent cannot access funds. One of the most common ways to do this is to establish a revocable living trust, with which assets are taken out of a person’s name and placed in the name of the trust. Many seniors act as their own trustee, at least at first, but if a person becomes incapacitated or otherwise less mentally well, an adult child or other trusted person can act as a co-trustee to oversee matters.
Alternatively, one can set up a trust that is irrevocable, meaning it cannot be changed or accessed once created until the settlor (the person for whom the trust was created) passes away. This is generally best for a person who is mentally unwell or otherwise unable to handle their own finances. That said, it is crucial to have an open line of communication with the family member who is planning their estate; honesty and transparency can cut away any shame or fear the person may feel after being scammed.
Contact A Westchester County Asset Protection Attorney
Many seniors are sensible, canny people who have educated themselves about the nature and likelihood of fraud. That said, even the most sensible people can benefit from legal protections. A Westchester County asset protection attorney from Meyer & Spencer, PC can help you structure your estate in a way that gives you extra peace of mind. Contact our office today at (914) 741-2288 to schedule a consultation.
