Identity Theft of the Deceased

M. Gustafson Gervasi, 2013

Not even death can protect someone from having his or her identity stolen.  In fact, death may just make it easier.  Last week I attended an interesting seminar on identity theft, which generates over$20 billion in lost dollars a year.  Florida tops the list for offenders and my home state of Wisconsin ranks 31st, but not matter the state of residence it is an issue for surviving loved ones to consider.

According to the presenter, a representative from Wisconsin's Office of Privacy Protection, there are various types of identity theft.  There is the obvious, financial, where someone runs off with your funds or makes purchases under your name.  But there is also theft of a child's identity, often not uncovered until the child reaches age 18 and sets off into the world to discover someone has been using his or her SSN for years. There is medical identity theft, where a thief uses your medical insurance  And in the case of the deceased, a thief picks up where you left off.

For those tending to a deceased loved ones estate, the speaker offered the following tips:

• file a final income tax form as soon as possible to prevent a thief from redirecting a refund to his or her address;
• turn in a drivers license to the DMV;
• property dispose of other ID cards and the SSN card;
• contact all credit cards and other lending organizations and shut off the account

Please note, a blog post is not legal advice and should not be relied upon. Rather, it is a vehicle for education and discussion. You should contact a lawyer in your state for advice specific to your situation.  Thanks for reading.

Identity Theft and Tax Time

Image credit: www.sxc.hu - free image

Waiting in my email in-box this morning was a message from the United Way of Dane County.  A weekly newsletter, it often contains usual information to my legal practice.  The top story shared news that the IRS is cracking down on identity theft this year, in conjunction with tax season.

Apparently, identity thieves steal a Social Security number and then file the 1040 before the tax payer does. The hope is that they'll collect the refund before the well meaning citizen.  The article includes tips on keeping the number safe, etc.  Reading it, two additional thoughts came to my mind, based on my experience with estate planning.

First, never create estate planning documents that contain your Social Security number.  Historically the number was included on powers of attorney as well as wills.  Occasionally I will see one of these filter through my office, created long before I entered practice.  Immediately I advise the client to create new documents.  Why?  Upon illness or death the forms are shared, and with a will, it is filed with the court.  It can become a public document, and that makes it oh so easy for a thief to steal a number.

And second, don't forget to protect EINs assigned to an estate.  Like a Social Security number, and EIN is distributed by the IRS as a unique number for tax purposes to estates, business, and other entitites.  Estates can actually generate income (sale of stock, home, interest earned on investments, etc), and must file a tax return if over a certain amount (usually $600 per year).  Just this morning my jaw dropped when reviewing an estate inventory filed by a personal representative prior to the family hiring me.  Smack dab at the top of the page is the estate's EIN number.  Yet another opportunity for a thief to steal the number, file a return, and walk off with a refund rightly owed to the estate.

Lessons to take from my post -- review documents previously created to make sure sensitive information is not included, and treat an EIN just as you would a SSN.  Thanks for reading, and remember, a blog is not a lawyer.  Please consult with an attorney in your state for advice specific to you situation.

Death and Identity Theft

Image credit:  www.sxc.hu - free image

Dying does not put an end to identify theft, it may even accelerate it!  According to this article the Social Security Administration sells its list of deceased Social Security card holders.  From which the deceased's SSN can be posted on-line, and be stolen.  Thieve claim the deceased on his/her tax return, and take the deceased's tax return if it was available.

Prevention occurs when loved ones monitor a deceased person's credit report, which requires a death certificate and proof of relationship.  Seriously!  I loose a family member and now I have to monitor their credit until I die!  Honestly, the government needs to take steps to prevent SSNs from being posted on the internet.

Agree with me?  If yes, I urge you to contact your Representative and or Senator in the US Congress.  Simple changes would spare families continued loss, and bring an end to some criminal pursuits.