Death and identity theft: What to tell your heirs
Identity theft – which often involves someone trying to steal your identifying information and using it to open credit cards, obtain loans and more in your name – is a big problem these days. Believe it or not, you can’t even stop worrying about identity theft once you’re dead.
Identity thieves have no shame, and they won’t hesitate to open credit in your name after you’re gone. That can create significant hassles and a lot of emotional distress for your loved ones. So, what can you do to prevent it? Leave your loved ones some important instructions.
1. Notify the Social Security Administration (SSA)
The SSA has a Death Master File or “Death Index” that contains the records of everybody with a Social Security Number who has died. This list can be accessed by financial institutions and used to prevent identity fraud. While funeral directors typically notify the agency of someone’s passing, it can take up to 60 days for the notice to go through – unless one of your loved ones makes a call. Make sure your spouse or the executor of your estate knows to inform SSA of your passing right away.
2. Be cautious about the information in your obituary
Obituaries can sometimes be a little too personal, and identity thieves monitor them. Tell your loved ones to avoid including sensitive information, such as your complete birthdate, maiden name, previously married names, place of birth and other details that someone can use to pretend to be you. You can also write your own obituary as part of your estate planning.
3. Notify the creditors and credit reporting agencies
Tell your executor to make sure they quickly notify your creditors of your death and lock your accounts. Then make sure that Experian, Equifax and TransUnion (the three major credit reporting bureaus) freeze your credit. They’ll likely need to forward copies of your death certificate to all of them, but it’s worth the effort.
This is the kind of information that you can put in a letter of instruction for your executor or loved ones that’s separate from your will and other estate documents – and it’s one more final loving thing you can do.