A Guide to Avoiding Scams: Protect Yourself and Your Finances
Christopher Davis • February 12, 2025
In today’s digital world, scams are becoming increasingly sophisticated, targeting individuals of all ages—especially older adults. At Davis Law Firm, we are committed to helping you safeguard your hard-earned assets from fraudsters. Below, we outline three common scams to watch out for and provide tips to protect yourself.
1. The Bitcoin Scam
What It Is
You receive a call, email, or text message from someone claiming to represent a government agency, business, or even a friend. They instruct you to withdraw money and convert it into Bitcoin as a way to “secure” your funds or complete a “transfer.”
Red Flags
- They claim urgent action is needed, pressuring you to act immediately.
- They ask you to use cryptocurrency, which is nearly impossible to recover once sent.
- They refuse to communicate through official channels or avoid providing clear identification.
What to Do
- Hang up or ignore the message. Legitimate organizations will never ask for Bitcoin payments.
- Contact the alleged organization directly using verified contact information to confirm the request.
2. The “I Love You” or Romance Scam
What It Is
A scammer poses as a romantic partner or family member in distress. They build trust through online relationships or pretend to be a distant relative. Once trust is established, they ask for money to handle an “emergency” or help with travel expenses.
Red Flags
- They request money through untraceable methods like wire transfers, gift cards, or cryptocurrency.
- They refuse to meet in person or provide vague details about their identity.
- The relationship moves unusually fast, often with declarations of love or urgency.
What to Do
- Never send money to someone you have not met in person or cannot verify as a real family member.
- Ask detailed, specific questions that only your real family member could answer.
- Block and report suspicious accounts on social media or dating platforms.
3. The Credit Card Transfer Scam
What It Is
A fraudster asks you to transfer all your money from your credit cards or accounts to another account under the pretense of “protecting” your assets. They might pose as a financial advisor, bank employee, or law enforcement official.
Red Flags
- They claim your accounts are compromised and need to be “secured” by transferring funds.
- They ask for sensitive account details or personal information.
- They urge secrecy and warn against telling anyone else about the transaction.
What to Do
- Never provide account details or make large transfers without verifying the legitimacy of the request.
- Contact your bank directly to confirm whether your account is compromised.
Tips to Stay Safe Online
- Verify Before You Act: Always double-check any requests involving money or personal information.
- Educate Yourself: Stay informed about common scams and how they operate.
- Trust Your Instincts: If something feels off, don’t proceed without consulting a trusted advisor or family member.
- Keep Personal Information Private: Avoid sharing sensitive details online or over the phone.
If you believe you or someone you know has been targeted by a scam, contact your local law enforcement, National Elder Fraud Hotline, your bank/financial institution, or trusted loved one.
If you have a child or loved one with a disability, you may be wondering how to provide for them financially without putting their public benefits at risk. That’s where a special needs trust comes in. In Minnesota, a special needs trust (also called a supplemental needs trust) allows you to set aside money for someone with a disability without disqualifying them from essential programs like SSI or Medicaid. These trusts are carefully designed to cover “extras” that improve quality of life—things like education, travel, therapies, and assistive devices—without replacing government benefits. There are different types of special needs trusts depending on where the money comes from. A third-party special needs trust is funded by someone other than the person with the disability—typically a parent or grandparent. A first-party trust , on the other hand, is funded with the disabled person’s own assets, often from an inheritance or legal settlement. Both require specific language and must follow federal and Minnesota rules to remain valid. Setting up the trust involves choosing a trustee (the person who will manage the funds), clearly defining how the money can be used, and making sure it’s coordinated with your broader estate plan . If the trust is part of your will, it’s critical that your documents are consistent. We often work with families in Rochester, Lake City, and Cannon Falls to make sure everything lines up correctly. You’ll also want to consider naming backup trustees and making plans for what happens if your family’s needs change down the line. A well-drafted special needs trust gives you flexibility, protects your loved one’s eligibility for benefits, and gives everyone involved greater peace of mind. We help parents and caregivers throughout Southeastern Minnesota create special needs plans that actually work—not just on paper, but in real life.
A healthcare directive is one of the most important estate planning documents you can have—regardless of your age or health status. In Minnesota, a healthcare directive lets you make your medical wishes known in advance and appoint someone you trust to speak for you if you can't speak for yourself. So what exactly does it cover? First, it gives you the ability to spell out your preferences for treatment. That includes choices about life support, organ donation, pain management, and end-of-life care. If you have strong feelings about resuscitation, feeding tubes, or being kept alive on machines, a healthcare directive allows you to put those instructions in writing. Second, you can name a “healthcare agent”—someone who can make decisions on your behalf if you're unconscious or otherwise unable to communicate. In Minnesota, this person doesn't have to be a family member. It just needs to be someone you trust to follow your wishes and advocate for you in a medical setting. Your healthcare directive can also include values or personal statements. For example, some people want their loved ones to prioritize comfort over aggressive treatment. Others want spiritual or religious beliefs reflected in their care. By including these details, you're helping your family and doctors understand what matters most to you. We often help clients in Rochester, Red Wing, and Zumbrota create healthcare directives that comply with Minnesota law and reflect their personal values. Whether you're a working professional, recent retiree, or simply want peace of mind for your family, it's a key part of a complete estate plan . And unlike a will or trust, a healthcare directive goes into effect while you're still alive—so it's critical to get it right. If you haven't created one yet—or it's been years since you looked at yours— we can help you draft or update a document that works with your overall estate planning goals.
Being named the executor (also called the “personal representative”) of someone’s will is an honor—but it can also feel like a heavy responsibility. You’re not just carrying out final wishes; you’re navigating a legal process that comes with deadlines, paperwork, and the need to make calm, informed decisions during a difficult time. If you’ve been named executor of a will in Minnesota, here’s what you can expect and how to get started. Understand Your Legal Role As executor, your job is to handle the deceased person’s estate. That includes locating and valuing assets, notifying heirs, paying debts, filing tax returns, and distributing what’s left according to the will. In Minnesota, most estates must go through probate , which is a court-supervised process. Some estates qualify for simplified procedures—but many require formal filings and strict timelines. Locate the Will and Important Documents Before anything else, you’ll need to locate the original will, along with documents like deeds, account statements, insurance policies, and lists of debts. If you can’t find them, the process becomes more complicated. We help clients in Rochester, Red Wing, and Wabasha organize what’s needed and make sure the court gets what it requires. Open the Probate Case To get legal authority, you’ll need to file paperwork with the county probate court. Once approved, the court will issue “letters testamentary” that allow you to act on behalf of the estate. This step often overwhelms first-time executors, especially if they’re juggling grief and out-of-town travel. That’s why many people work with an attorney experienced in Minnesota probate & estate administration . Notify Heirs & Creditors Minnesota law requires you to notify certain people and institutions—including heirs, beneficiaries, and creditors. You’ll also publish a legal notice in a local newspaper. Missing someone or doing it late can delay the process, so it’s important to keep track of deadlines. Handle Assets & Debts Properly You’ll need to create an inventory of the estate’s assets, determine which debts are valid, and pay bills using estate funds. Some things—like selling a house or managing a small business—can take time. We help clients avoid personal liability by making sure everything is done by the book. Distribute What’s Left According to the Will After debts are paid and taxes are filed, you’ll distribute the remaining assets to the people or organizations named in the will. You may also need to file a final account with the court. If disputes arise among family members, we can help mediate solutions before things escalate. If you've recently been named an executor, don’t try to figure it all out on your own. We work with personal representatives across Southeastern Minnesota to guide them through the process step by step .