Estate Planning for Your Identity

Prepare now, prevent fraud later

December 2009

Few experiences are as trying as the death of a loved one. When identity-related fraud occurs in its wake, it only adds to the emotional and logistical burden. Fortunately, there are ways to reduce the chances of fraud involving the deceased’s personal or financial information. And if you are involved in end-of-life planning, there are some steps you can take now.  The new year is an excellent time to update your plan, or to get started if you haven’t done so already.

You should update your will once or twice a year, as necessary, allowing for changes in beneficiaries, account information or policy changes.  You should also include the following:

Wills should be kept in a home safe or safety deposit box to which spouses or executors have access. If a loved one is using a safety deposit box, be sure he or she has checked on a bank’s safety deposit box policies, and that survivors understand them. Some policies allow survivors to access a box only to look for a will. Others may require an affidavit to obtain a box’s contents.

Checking and savings account information should be kept current, especially the provision naming the Pay upon Death (POD) beneficiary. If this is not accurate, a bank could refuse funds to whom they were intended.

Details to keep in mind in the wake of a loved one’s death:

If the loved one is your spouse, ascertain financial assets and obligations. These include any and all insurance policies, 401(k) plans, credit and auto loan accounts, and more. In the wake of your loved one’s passing, you’ll want to notify all credit card companies and other institutions within 10-14 days (otherwise benefits could be affected). Close accounts when possible and monitor those that must remain open.

Obtain 15-20 copies of the death certificate. Typically, funeral homes will furnish these free of charge, and they are usually available within 10 to 14 days. If six months or more have elapsed, you may need to obtain death certificates from your state’s department of vital records. Be aware that this could delay Social Security or veteran’s benefits.

Notify the Social Security Administration. You will need a copy of the person’s tax information from the current as well as previous year. Contact the Web site www.ssa.gov or call 800-772-1213 for assistance, and have birth certificate, Social Security card, and death certificate information handy.

Contact all three credit-reporting agencies.  Supply them with a copy of the death certificate and a copy of the Social Security card so that each bureau can suppress the decedent’s credit file, thus prohibiting new accounts from being opened in that person’s name. Here are the agencies’ contact information:

TransUnion Consumer relations-Dispute Processing
P.O. Box 6790
Fullerton, CA 92834-6790

Experian Dispute Processing
P.O. box 9701
Allen, TX 75013

Equifax Information Services LLC Fraud Investigation
P.O. Box 740256
Atlanta, GA 30374-0256

Contact the DMV. Contact your state’s department of motor vehicles and provide them with a copy of the death certificate so they can update their records accordingly. If there is a balance on any vehicles that cannot be paid off, inform the DMV so there are no license fees attached to you.

Use the DDNC list. That stands for Deceased Do Not Contact List, and it prevents preapproved applications or sales flyers or promotional information from being sent to the home of the decedent. For more information, check out www.ims-dm.com.

Limit information placed in obituaries. Obituaries should not include a person’s complete address, date of birth or death, survivors’ names or their professional history. Limit obituary information to a person’s age at death, the number of survivors and their relationships to the individual (a wife, two children, and three grandchildren, for example), as well as the city and state in which he or she lived.

Look into military benefits. Military benefit information can be found at www.va.gov. When inquiring about benefits, it is helpful to have the decedent’s military ID card or SSN handy.

Determine legal representation. If an executor or power of attorney isn’t specified in a will, the estate needs to be handled by an attorney who can determine what inheritance taxes are owed the state and who can ensure insurance policy benefits are appropriately divided between survivors.