By Elizabeth A. Caruso, Esq.
Myth or fact? The Internal Revenue Service will call you to inform you that you owe money on your taxes and expect you to give all of your protected information over the phone and make your payment.
This is a myth!
The IRS will never call you and expect you to confirm your protected information (Social Security number, date of birth, etc.) over the phone. They are much more likely to send you a letter asking you to call them. Calls from the IRS and other financial scams is something that our firm recently talked about on our radio show, “Legacy Legal Live,” that you can listen to every Wednesday night at 6 p.m. on WMEX (1510 AM and 101.1 FM), and they can be a good reminder as to how helpful estate planning documents can be.
I’m sure many of you who are tech savvy have received scam emails asking for funds to be sent to a prince overseas with promises of being repaid three times as much money as you sent, or maybe the email asks you to purchase gift cards and mail them out with the promise of being paid much more than their value upon receipt. Financial scams can also come in the form of phone calls with people pretending to be the IRS, Social Security office, Medicare, or even a loved one who is in a bind and needs money. According to the FBI, financial scams costs seniors nearly $2 billion a year.
How does this all tie into estate planning, you may ask? Having a power of attorney can help prevent or curtail seniors from falling prey to financial scams. Naming someone you trust to act on your behalf for your financial affairs can give you a second set of eyes on your financial accounts and also give that trusted someone the authority to be your advocate and make phone calls or other communications on your behalf to confirm any request that you receive for your information or to pay funds that are allegedly owed.
An elder law attorney can help you to create a power of attorney that can name that trusted person to be your advocate and second set of eyes. If you already have a power of attorney and you don’t know if it contains these aspects, an elder law attorney can review it and advise you.
About the Author: Elizabeth A. Caruso, Esq. is an attorney at Legacy Legal Planning, LLC, in Norwell. She has been practicing estate planning, probate, and elder law on the South Shore for more than a decade. If this article has sparked questions for you, please feel free to reach out via phone 781-971-5900 or email elizabeth@legacylegalplanning.com to schedule a time to discuss your unique situation.
