The Blitz Newsletter - June 2020

June 2020

Information on Tax and Estate Planning from the Masonic Charities of the Grand Lodge of Pennsylvania Due to the COVID-19 crisis, all travel and events are suspended until further notice.

In light of this unprecedented time, I would like to share some information on two major topics for this issue of “The Blitz:” Coronavirus Scams and Estate Planning for Digital Assets. Let’s get started.

Estate Planning for Digital Assets

Riding it Out and Praying for a Vaccine Here we are, just several months into this pandemic, and it feels like several years. My hands are getting irritated from the constant washing, but I guess the alternative is worse. The little things in life really count right now. I am noticing some of nature’s wonders, like our backyard chipmunks nibbling on sunflower seeds. I enjoy waving to my neighbors as I walk for exercise each day. Most importantly, I am grateful for the health of my family and some time at home with my wife, who is laid off from her school job. Instead of focusing on depressing news, I pray for a vaccine.

Working at home and using the Internet each day makes one wonder what happens to all the digital accounts and family photos in the cloud when you die (only an estate attorney would think of this). For those of you unfamiliar with cloud computing, it is a method of storing and accessing data and programs over the Internet instead of on your computer’s hard drive. Well, I did some research and concluded that we all need to get up to speed on this topic, especially now that this pandemic is forcing even those on the sidelines all these years to go digital. In the past, when drafting a will, it never dawned on me what a hassle it would be to close out social media accounts, online financial accounts, frequent flier and credit card accounts, email accounts, blog posts and even cryptocurrency (a type of digital or virtual money that serves as ordinary currency).

So, what happens if you become incapacitated or die? Well, most Terms of Service Agreements (TOSAs - you know that long agreement we scroll through and never read except to click “I agree” at the end) give only limited access to a digital account to anyone other than the account

owner. Many companies require a court order to gain access to an account, causing valuable lost time and potentially resulting in accounts being hacked and critical emails not being responded to. Presently, Pennsylvania has no specific law covering access to digital assets by fiduciaries, so it is unclear who can access your digital assets when you become incapacitated or die. Fortunately, Pennsylvania State Senator Tom Killion (R-9), introduced SB 320, called the Fiduciary Access to Digital Assets Act, which unanimously passed the Senate last year and awaits action in the House. This bill would allow a fiduciary, such as an executor, trustee, agent of a power of attorney or guardian, to access digital property in the same manner as they would access tangible assets, which is by sending a request to the custodian of the digital asset, along with a certified copy of the document granting fiduciary authority. The legislation would override the TOSA. Even with such legislation, most advisors are recommending that your estate plan include provisions that authorize your fiduciary access your digital assets, including email and social media.

Other steps to consider in protecting your digital assets include: 1. Create a list. Creating and maintaining a list of your digital assets and procedures on how to access them will help your fiduciary gain access as quickly as possible to protect them. It also prevents your fiduciary from overlooking an asset which could be lost.

2. Keep the list safe. Print your list of digital assets and keep them in a safe place with your estate planning documents or store them within a password manager online.

3. Choose the right settings. Some online companies, such as Google and Facebook, allow the user to appoint individuals to manage the account upon their demise. It is wise to make sure these settings are consistent with your estate plan and the executor that is appointed to handle your digital assets.

4. Plan a comprehensive appointment. Make sure you coordinate the appointment of your agent under your financial power of attorney, your trustee if you have a living trust, along with your executor over access to your digital assets.

5. Find the right estate planning attorney.

Consider choosing an attorney versed in this area, especially if your digital assets are substantial in value. Estate planning documents need to address specifically who is appointed to serve as your fiduciary for all your digital assets.

Don’t leave your heirs and executor a mess to clean up when you pass away by failing to organize your digital assets. These steps may save your estate from serious financial harm if such assets fall into the wrong hands.

Tips to Avoid Coronavirus Scams I know we all think that only dumb people get duped. I wish this was true, but many of us are too embarrassed to admit when we get taken. When you are isolated at home and vulnerable, even the sharpest tool in the shed can make a mistake.

So let’s go over the top eight list for coronavirus scams. Many of them are obvious, but it is worth reviewing them so you don’t let your guard down.

1. Phishing scams are really dangerous. These are usually fraudulent emails, texts, phone calls or websites that try to trick you into disclosing private account or login information. Many times, you can see them coming by checking the email address, text number, phone number or website address the message came from.

If you don’t recognize it, delete it. If it looks like the message is from someone you know but doesn’t feel right, then reach out to them through an alternate method to confirm the communication was indeed sent by them.

Never click links or attachments you are not sure of. It is better to delete a message and

be wrong then to click through and have your personal information stolen.

2. Don’t believe the next COVID-19 vaccine, cure or treatment solicitation. Let’s face it, we all want to believe the cure or vaccine is just around the corner, but only accept information from a trusted source.

3. Be wary of COVID-19 information from unreliable sources. The news is dizzying on what is going on with COVID-19, so it is hard to know what news source to trust anymore. Many sources tend to look like official websites or emails. Your best bet, for now, is to visit the websites on the federal government response at USA.gov/coronavirus, or at the Centers for Disease Control (CDC), World Health Organization (WHO) and your local health department websites for the latest developments. Even then, be careful that the URL for any website is real since cyber crooks are setting up malicious websites that look like official with just a minor change to the URL address. For instance, CDC.gov might have a malicious site of CDC_COVID.gov.

4. Watch out for illegitimate charitable solicitations. This is not the time to let your guard down from individuals asking for money to help with anyone affected by the COVID-19 crisis. Only give to reputable organizations that you’re familiar with, even in times of crisis.

If you suspect a scam, don’t give, especially if it is a request by wire transfer, debit card, gift card or through the mail. Check sites like Charity Navigator or GuideStar if you suspect the caller is not legitimate.

5. Report possible scams to the authorities. To look up or report suspected scams, try the federal websites USA.gov, or ic3.gov (FBI), or FTC.gov/coronavirus. Confirm your suspicion by talking to a reliable and trustworthy source first before taking action on any request with which you are not familiar.

6. Use multi-factor security settings. Before you or anyone can login to your account, require a

text or email be sent to a device you keep in your or your spouse’s possession to mitigate the chance of unauthorized entry. I have this for all my accounts. It’s worth the extra step.

7. Set up notifications and regularly review use of your credit or debit card. This has less to do with COVID-19, but it is good practice to set up push notifications, emails or text messages to your phone on the use of your card. I recently did this for my credit cards. It provides a sense of security to know who is using the card, especially when a card is shared with family members (it’s always nice to know when your son just charged a new computer on your credit card). I also have the apps on my phone for each of my credit cards and check them regularly for any transactions as a second line of defense. With all of us conducting fewer cash transactions now, these security steps are worthwhile to protect you from fraud.

Most of all, keep your guard up during this crisis. Unfortunately, there are those who will try to take advantage of the current situation.

Feel April 2020 free to email me with any questions or comments regarding this topic. Until next time, stay safe.

Two Updates 1. Widow Support - There is now more

information than ever regarding the Widows’ Guild program and other support services available to Masonic widows on the Masonic Villages’ website at masonicvillages.org/widows.

You can also view all issues of the “Blue Slipper Stories” newsletter and listings of upcoming events. A simple contact form allows your questions to be answered with one easy click!

2. CGA Rates to Change - Effective July 1,

2020, the interest rate on charitable gift annuities will be lowered by 0.3 to 0.5%. To lock in the current higher rate, notify us by June 30 of your intent to purchase an annuity and close by July 31, 2020, by calling 1-800-599-6454.

1-800-599-6454 | MasonicCharitiesPa.org

Masonic Charities One Masonic Drive Elizabethtown, PA 17022

June 2020

As Chief Gift Planning Officer for the Masonic Villages in Pennsylvania, Alvin H. Blitz, Esq., serves the Masonic Charities of the R.W. Grand Lodge of Pennsylvania, which consists of the Masonic Villages, the Masonic Children's Home, the Pennsylvania Masonic Youth Foundation, the Masonic Library and Museum of Pennsylvania and the Masonic Charities Fund. Attorney Blitz holds a Bachelor of Science degree from the University of Scranton, a Master of Arts degree from Fairleigh Dickinson University, and a Juris Doctorate from Dickinson School of Law. He has given estate planning seminars throughout the country and is a member of Carlisle Lodge No. 260, Carlisle, Pa. Contact Alvin Blitz: 1-800-599-6454 or ABlitz@masonicvillages.org