A QUEENSLAND family has been fleeced of more than $1.3 million in an elaborate variation of a scam that persuades people to part with large sums of money so they can retrieve an overseas inheritance, police say.

The fraud has become known as the Nigerian 419 scam.

Steven Baker, a member of the Queensland family who lost up to $1.5 million, has told police he was approached by a friend who believed her father, whom she had never met, had left a $US17 million ($20.38 million) estate when he passed away.

He said the woman had never met her father, but she knew his name and responded to a newspaper advertisement that had individually targeted her, mentioning both her name and her father’s.

Fraudsters communicated with the woman through a solicitor from a Liberian legal firm offering her the “inheritance”, however the woman could not afford the requested series of payments to cover supposed legal fees, administrative charges and local taxes to forward the funds to Australia.

Mr. Baker was then approached to help.

During the scam, which lost the Baker family between $1.3 million and $1.5 million since early 2005, Mr Baker travelled to Europe three times, where he was shown an elaborate ruse of fake government officialdom in Spain, Italy and Holland and was taken to a Spanish bank and shown a case of United States currency that was supposedly the inheritance.

“The professionalism of it is just unbelievable, the paperwork, the officials, going to government departments, you would think if they were straight out scammers they wouldn’t have access to government officials and places and the paperwork with all the stamps,” Mr. Baker told ABC radio.

Mr. Baker came forward to police after viewing a current affairs segment on Nigerian-style scams last month.

Police said the scam in which the Baker family lost money was an especially elaborate version of the Nigerian-style scam, which can originate from any part of the world.

“We can only theorize how they came to know (the woman) and I would suggest it would be from online chat rooms where she thinks she knows who she’s talking to, and people say a lot of things that they wouldn’t tell others,” Detective Acting Superintendent Brian Hay of the Fraud and Corporate Crime Group said.

“I’d say they built up a profile and specifically targeted that person. (This is a) very elaborate, well-resourced and well-organized scam.”

The Baker family should feel no shame, he said.

“They saw an opportunity, it (seemed) legitimate, they did a lot of research, a lot of the names of the companies and businesses all panned out to be legitimate with their cursory inquires.”

Anyone who is asked to send money overseas for an investment or inheritance retrieval should contact the country’s consulate in Australia first, he said.

One man has been arrested in Amsterdam following Mr. Baker’s complaint.

These common, unfortunate estate planning mistakes can be easily avoided by retaining a qualified attorney:

1. NOT HAVING A WILL

o People procrastinate. They figure that they don’t need a will because they have few valuable assets. They can’t decide who should receive what, or who should be “in charge.” They are afraid their family will fight. They don’t want to spend money on an attorney. Whatever the reason, when the probate court receives no guidance from the deceased, it must turn to state law to determine the disposition of the estate. At this point, the family has lost any control over the outcome. Instead of avoiding a family fight, the deceased has put his or her family in conflict at a most vulnerable time.

2. No health care directive and/or no power of attorney

o A proper estate plan must consider these important legal documents. Without a health care directive, medical treatment may proceed without consideration of your wishes regarding the extent of treatment. Do you want to be kept alive with expensive medical technologies? Who in the immediate family is to make such decisions? Conflict often results among family members. A health care directive expresses your wishes regarding medical care and can appoint one or more persons to make vital decisions on your behalf when you are incapacitated. Likewise, a power of attorney appoints one or more persons to handle your financial and legal matters if you are incapacitated. Together, these documents complete the picture of how to assist you in your time of need with the least conflict, upheaval and surprise possible.

3. Handwritten wills/will changes

o A valid will must be signed and witnessed by at least two people. Any editing of a will after the fact is invalid and could invalidate the entire will. Consult an attorney if considering will changes, even minor ones, to ensure that any changes can be enforced.

4. Not coordinating beneficiaries

o A will cannot direct the disposition of all assets. Without using trusts, a will has no impact on life insurance, qualified retirement plans, pensions and any other asset where a named beneficiary will take the asset upon death. A review of these assets is an essential part of providing for integrated wealth transfer consistent with your wishes.

5. Not organizing and sharing information

o Drafting a will is only a first step to complete estate planning. It is very difficult for a personal representative to carry out your wishes if they cannot find the information concerning your assets. Make sure your personal representative knows where and how to access the records of your financial accounts, life insurance policies, etc. As important, annually organizing your files, including a review of the will and related documents ensures an accurate reflection of your wishes.

6. Keeping a will in a bank deposit box

o This seems like a good idea – keeping valuable documents in a safe place! However, safe deposit boxes typically only grant access to the depositor. If the depositor has died, getting to the will in the safe deposit box usually requires court appointment as the personal representative—an appointment that only comes when the court has the will, which is still in the safe deposit box, creating a “Catch-22.” The original will should instead be kept with the attorney, in a fireproof safe, or in a safe deposit box with joint access, or a combination of these methods. Note that this last choice has other risks, requiring confidence and trust in the other individual.

7. Leaving money to minors

o Leaving money to a minor usually results in the need for a guardian or conservator to hold this money for the benefit of the minor, and to report annually on the status of the assets. A better alternative is to consult an attorney to properly leave such a gift in a trust for the minor’s benefit (health, welfare and education) with distribution of remaining funds to the minor when he or she reaches a certain age. When done properly this protects the minor, the gift and provides for a straightforward transition of the gift.

8. “Deathbed” wills

o Changes to a will or execution of a new will near the time of death or during incapacity usually result in a contest of the validity of the will. This can become a very expensive battle for those left behind. A far better alternative is regularly reviewing your estate plan with your attorney to ensure your wishes are accurately reflected in a will which is validly drafted, witnessed, and executed.

9. Failure to tax plan

o Estate taxes can reach up to 50% of the value of the estate. Because tax laws regarding exemptions vary each year, it is critical to consult an attorney, tax advisor or accountant regarding your estate planning. This ensures that the proper legal structure is in place to maximize the legacy you leave to your loved ones.