AVOIDING IDENTITY THEFT DURING ESTATE ADMINISTRATION

Every estate plan is different, both in terms of intent and form. Most, though, share the common goal of honoring a decedent's legacy. This is typically done through the giving of gifts, whether through a will or a revocable living trust. 

However, the integrity of an estate is not always guaranteed. In today's world, identity theft is an already-common crime that is only expected to become more prevalent in the coming years. Executors must often be proactive in ensuring the security of an estate at every stage of its administration. 

Identity Theft During Probate: Today, however, tech-savvy identity thieves can access sensitive information without ever leaving their computers. Common identity theft strategies include the following:

• Purchasing personally identifiable information off the dark web;

• Reviewing social media profiles for clues that can be used to guess passwords and security questions;

• Scouring obituaries and genealogy websites for the names of recently deceased persons; 

Identity Theft Complications: Identity theft can create serious complications in probate, the formal process of dissolving a decedent's estate and distributing their possessions to heirs and other beneficiaries. This is because New York probate typically necessitates that the deceased person's debts be paid before inheritances are ever paid. 

If an identity thief succeeds in siphoning off funds or opening new lines of credit, the probate court could presume that the decedent incurred lawful debts that must now be repaid in full. While executors can, of course, challenge unauthorized charges, doing so can cost time and money. 

Protecting an Estate From Cybercrime: However, while it may be near-impossible to prevent old passwords from being passed around the dark web, executors have options to reduce an estate's odds of falling prey to cybercriminals.

These include the following: 

• Contacting Credit Bureaus and Banks

• Notifying the Internal Revenue Service

• Keeping Sensitive Documents Safe

This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship. 

For more information on this and other topics, please contact Kevin via any of the channels listed below:

📧 kevin@kmckernan.com  | 📞 718-317-5007