How to Avoid Seller Scams When Inheriting Property from a Deceased Loved One
Beware of Hidden Dangers of Inherited Property
Your parents die. You inherit their house. Imagine your surprise when a few months later, you learn that your inherited house is listed for sale. But you didn’t hire the realtor! All too often scammers like to target inherited properties. Learn how to avoid seller scams when inheriteng prperty from a deceased loved one.
According to the the FBI’s annual Internet Crime Report a total of 9,521 reported real estate scams lat year. This number has stayed relatively stable over the past five years. But these crimes have become easier than ever to execute, according to experts. This is especially true when dealing with a deceased person’s property.
How It Works
When a spouse, parent, sibling, or close friend passes away, it's natural to want to share their story. Obituaries and social media posts often highlight what made the person special and include cherished memories. However, as you celebrate your loved one's life and mourn their death, be mindful of what you share, as scammers are watching.
Obituary scams, also known as bereavement scams, begin with information gathered from death notices in newspapers or online. Criminals use details like the deceased's birth date, residence, workplace, and family members' names to build profiles for identity theft.
With just a few key details, criminals can locate and purchase a deceased person's personal data on the dark web. This includes their home address and Social Security number. They use this information to access or create financial accounts, take out loans, obtain health care, or file phony tax returns to claim bogus refunds in the deceased’s name—a form of ID theft known as ghosting.
Use of Information
Scammers also use details about a recent death to target surviving family members with impostor scams. Posing as government officials or debt collectors, they solicit payment for supposed unpaid bills or loans.
They use stolen personal information from the internet to create fake IDs and forge deeds. They attempt to sell these properties or apply for mortgages in the deceased owner's name. They also target vacant lots, vacation homes, and other properties that are paid off and not closely monitored like primary residences.
Once they list a property and entice a buyer, scammers push for a quick, cash sale. They may insist on using their own notary or other vendors to expedite the process. These scammers aim to complete the sale with as little attention as possible.
And these scammers even target celebrities.
Elvis and the Scammers
For the past few weeks, we've explored how celebrities have planned for their deaths, starting with Michael Jackson. To conclude our 4-part series, we turn our attention to Elvis Presley, the King of Rock.
Why discuss a man who passed away in 1977? A recent case involving Graceland highlights the audacity of scammers, serving as a crucial lesson for property owners and heirs. This bizarre tale offers valuable insights on safeguarding your assets from unscrupulous actors. Let’s dive in and uncover what you need to know to protect your estate.
How It Went Down
You might think that a well-known property like Graceland would be untouchable. But, that didn't stop a mysterious company from trying to steal it. A group calling itself Naussany Investments and Private Lending claimed that Graceland's owners owed them millions from an old loan. They even set a date to auction the property to the highest bidder. But there was just one problem – the whole thing was a scam.
Riley Keough, Elvis's granddaughter and the current owner of Graceland, quickly fought back. She filed a lawsuit, saying her mother, Lisa Marie Presley, never borrowed money from this company or put Graceland up as collateral. The courts agreed, stopping the sale just in time. Keough’s swift action got the attention of the Tennessee Attorney General’s office, which then turned over the case to the FBI, and a federal investigation is pending.
Scams Increasing
Unfortunately, there’s been a rise in these types of scams. They aren’t just targeted at the rich and famous. Scammers are adept at taking advantage of those of us who have never had a top-10 hit. A Wall Street Journal article published on June 3, 2024, breaks down a typical scenario, which is on point:
“Here’s how it works: A fraudster targets your house and assumes your identity, using tactics similar to identity thieves to acquire your personal information and create fake IDs. He or she then tries to sell it to an unsuspecting buyer by executing a forged deed in your name. An alternative scam is to submit a mortgage application in your name to get cash out of the house.”
Often, people don’t find out this has happened until the sale is complete By then, it may be too late to get the property back. Or at least it would be very time-consuming and costly. Some people cannot fight back because they don’t have the financial resources to do so. The results can be utterly heartbreaking.
If it can happen to Graceland, it can happen to you. So, how can you spot these scams before they spin out of control?
Red Flags You Can’t Ignore
When you're dealing with property, loans, and estate planning, keep your eyes peeled for these warning signs:
Paperwork problems: In the Graceland case, the documents had all sorts of issues. Dates didn't match up, signatures looked fishy, and the notary said she never met Lisa Marie Presley. Always read the fine print and question anything that looks off. You should also consult with a lawyer immediately if you suspect something fishy. A lawyer can confirm your suspicions and help you take action right away.
Ghost companies: According to the news articles, Naussany Investments was hard to pin down. They had no real address, just P.O. boxes, and weren't registered as a business anywhere. Before you deal with any company, especially for something as important as a loan, do your homework. Look them up online, check with the Better Business Bureau, and don't be afraid to ask probing questions.
Timing: The scammers waited until after Lisa Marie Presley passed away to make their move. Be extra cautious about any claims against a deceased person's estate – fraudsters often target families when they're most vulnerable.
Steps You Can Take to Protect Yourself
Know that you can take proactive action to protect yourself and your loved ones, before you notice red flags. Here are some practical steps to ensure your property is protected:
Keep good records: Make sure all your important documents are organized and easy to find. This includes property deeds, mortgage papers, and any loans you've taken out. If someone makes a false claim, you'll have the proof to fight back as quickly as Riley did. Regular review and updates of these documents are crucial.
Be skeptical: If something sounds too good to be true, it probably is. Be wary of unsolicited offers or demands, especially if they come with pressure to act quickly.
Stay in the loop: If you're inheriting property or managing it for someone else, know what's going on. Are the taxes paid? Is there a mortgage? The more you know, the harder it is for scammers to pull a fast one. The reason Riley Keough was able to take action quickly enough to stop the sale was because she was paying attention.
Scammers Affect Incapacitated People, Too
You also want to make sure someone else is paying attention to your affairs in case you become incapacitated. In last week’s article, we discussed what can happen if you become incapacitated and you haven’t planned for it. If you missed it, here’s a sneak peek: it took months for Jay Leno to be able to manage his wife’s financial affairs once she was unable to herself. And as we’ve seen with the Graceland case, months could mean the difference between keeping your property and losing it. If you haven’t planned for your incapacity, book a call with me using the scheduling link below, and let’s talk about how we can get that taken care of for you.
And this brings us to the most important thing you can do to protect yourself. Incapacity planning isn’t enough. You need a solid and thorough Life & Legacy Plan.
A Solid Estate Plan is the Key
Having a solid estate plan creates a legal framework that's much harder for fraudsters to penetrate. The type of planning I do is solid and thorough. It covers all possible scenarios so you and your family are prepared for anything that can happen after your death or during your incapacity. It includes an inventory of all your properties and other assets, so you know exactly what you have, and your loved ones will also know if they need to step in and help. Our plan also includes regular reviews and updates so your plan stays current with changing laws and circumstances, closing potential loopholes that scammers might exploit.
Finally, we can help you ensure your loved ones know about these risks and are familiar with your estate plan. As we’ve learned from Elvis’s estate, the more eyes watching out for fraud, the better.
How We Help You Not Fall Victim to a Scam
Scams are on the rise and the best time to protect yourself is now. We help you create an estate plan so that your loved ones stay out of court and avoid conflict. We help you creat e a plan that works when you (and they) need it to. Once you’ve created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected.
Click here to schedule a complimentary 15-minute consultation to learn more:
This article is a service of Kristen N. Mackintosh, The Happy Lawyer, at Mackintosh Law, PLLC,, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy PlanningⓇ Session.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
