A. You likely have money, property and other items of value that you plan to leave to loved ones or charity. Here are 4 steps you can help yourself and your parents avoid becoming victims of inheritance theft:
1. Prepare an estate plan.
Documenting your desires for the disposition of your assets is the first step in preventing people from claiming you made verbal promises to them. Hire an estate attorney that you’ve vetted personally or who is referred to you by a trusted source.
2. Choose a trusted friend or family member to serve as your executor and/or trustee.
Don’t use an attorney, bank or trust company as executor or trustee because they typically charge exorbitant fees, often as a percentage of the estate’s value. And they can be difficult or even impossible to fire.
And to help make sure the trustee follows your instructions, distribute copies of your will and trust documents to all of your heirs. If you feel uncomfortable letting others see your plans, require your executor or trustee to retain the services of an estate attorney (at your or your estate’s expense) to oversee matters. Instruct that the attorney be paid on an hourly basis rather than as a percent of the estate’s value.
3. Keep all your legal and financial documents in a safe place,
This could be a safety deposit box or a fire-resistant home safe. Create digital backups.
4. If you make changes to your documents, inform all concerned.
And that includes your independent, objective, fee-based financial advisor.