Smart Estate Planning In 13 Steps

July 19, 2024

People never understand how expensive it is not to do any estate planning, explains an article from Kiplinger, “13 Smart Estate Planning Moves.” Consider these steps for your estate planning checklist:

The SECURE Act changed distribution rules for non-spouse beneficiaries. The ten-year rule requires most beneficiaries to empty the account within ten years of the original owner’s death. It may be time to rethink how your IRA is invested.

Consider a Roth IRA conversion. This allows heirs to receive distributions tax-free. Consider converting annual distributions instead of moving an entire IRA into a Roth.

Use the annual gift tax exclusion, which is $18,000 in 2024. You can give as many people as you want up to $18,000 without incurring gift taxes. A related choice: superfund a 529 college savings plan, putting five years of gifting into one year—up to $90,000 all at once. Check with your estate planning attorney to see how this could impact your estate plan.

Use up your lifetime gift exemption early. This is especially useful if you believe the gift and estate tax limits will be lowered when the Tax Cuts and Jobs Act expires.

Pay medical or tuition costs directly to the school or healthcare provider as long as checks are written directly to the institution; paying medical bills or tuition doesn’t count towards the annual exclusion or estate tax exemption.

Talk with your estate planning attorney about a Spousal Lifetime Access Trust. This is an irrevocable trust for a spouse, with each spouse opening one for another. The trusts must be different to avoid drawing the IRS’s attention.

Find out whether carrying forward any remaining estate tax exemptions unused by a deceased spouse is right for you. If you have appreciated assets, a bypass trust might be better.

Protect yourself and your estate from creditors and litigation with a domestic asset trust. This irrevocable, self-settled trust is available in twenty states. The person funding the trust can be the grantor.

Explore the use of revocable trusts. Some may not help with avoiding probate or trimming taxes but may work well for managing assets as you age or if you have health problems and expect someone to help manage your finances.

Make a plan for Medicaid and Special Needs family members. The massive cost of nursing home care makes this a necessity. Discuss the creation of a Medicaid Asset Protection Trust with your estate planning attorney.

Simplify your investment life. If you have investments in multiple accounts and different bank accounts, your executor will have more work to do.

Consider whether or not your estate should be managed by a professional, especially if you have a particularly argumentative or litigious family.

Finally, don’t delay having your estate plan created or updated. We all think we have plenty of time until we don’t. Meet with an estate planning attorney to update or create a new plan.

Reference: Kiplinger (May 9, 2024) “13 Smart Estate Planning Moves”

Avoiding Tax Issues When Gifting to Grandchildren

July 17, 2024

Gifting to grandchildren is a wonderful way to share your wealth with young loved ones. Getting some help at the right time can help ensure that they enjoy a bright future. However, taxes may drastically reduce the inheritance they receive. That’s why tax minimization strategies are vital for making the most of your legacy.

What are the Benefits of Gifting to Grandchildren?

Gifting to grandchildren can be transformative for them and their future. These gifts can make a difference, whether for education, starting a business, or simple financial stability. However, making the greatest difference will require a keen understanding of estate taxes.

Understanding Estate Taxes

Before a deceased person’s estate transfers to their inheritors, the government levies estate taxes. However, many ways exist to reduce or even avoid estate taxes altogether. Estate tax law is largely progressive and provides many allowances and deductions. In particular, accounts are available to fund your beneficiaries’ educations tax-free.

How Can 529 Accounts Help?

According to ElderLawAnswers, 529 accounts are ideal for helping your inheritors afford education. These special savings accounts are designed for college education expenses, K-12 tuition, apprenticeship programs and student loan repayments, and they offer significant tax advantages. The money you put into a 529 account grows tax-free, and withdrawals for qualified education expenses are also tax-free.

However, the disadvantage of a 529 account is that it only covers education-related expenses. General-purpose gifting has significant limits if you want to avoid a large tax burden.

What are the Limits on Gifting?

The IRS places annual limits on gifting to grandchildren, the annual gift tax exclusion. As of 2024, you can give up to $18,000 per year to each grandchild without incurring any gift taxes. If you stay within these limits, you won’t have to pay gift taxes or worry about reducing your lifetime gift and estate tax exemption.

Should You Consider a Trust?

Another strategy to reduce or avoid estate taxes is setting up a trust. You can structure trusts to manage your assets to meet specific goals. By implementing a trust, you can decide how and when your grandchildren receive their inheritance. This is particularly useful if they are young or not yet financially responsible.

What are the Types of Trusts?

There are various types of trusts to consider, such as:

Revocable Trusts: These allow you to maintain control over the assets and make changes as needed.
Irrevocable Trusts: These remove the assets from your estate, potentially reducing estate taxes. However, you cannot change the terms once it’s set up.
Education Trusts: Specifically designed to fund education expenses, similar to 529 accounts but with more flexibility.

Do Right by Your Loved Ones

Gifting to your grandchildren is a loving and generous act. However, you should gift wisely to minimize your tax burden. Contact our law firm today to learn more about estate taxes and the best strategies for gifting to grandchildren.

Key Takeaways

529 Accounts: Fund a loved one’s education with tax-free growth.
Annual Gift Tax Exclusion: Gift up to $18,000 per year to each grandchild without incurring gift taxes.
Trusts: Consider different types of trusts to manage and distribute assets effectively.

Reference: ElderLawAnswers (Jul. 12, 2018) “Using 529 Plans for a Grandchild’s Higher Education”

Do You Need a Living Trust?

July 15, 2024

Trusts have been called the Swiss army knife of estate planning, and rightly so. There are trusts for every purpose in estate planning, including the living trust, also known as the revocable trust. As described in the article “Is a Living Trust Really the Best Way to Pass an Inheritance to Your Family?” from The Motley Fool, you start by creating a living trust, then retitle assets to move them into the trust. When you die, assets in the trust are distributed according to the directions in the trust.

Trusts protect assets in ways last wills and testaments can’t. This is especially so if your wishes for the assets change during your lifetime.

One of the most significant advantages of trusts over wills is the avoidance of having the assets in the trust go through probate. While probate is better in some jurisdictions than others, in general, probate takes some time and requires the involvement of the court. In the process, your will becomes part of the public record. Anyone who wants to can read the will, grab the information you may have wanted to keep private and contact heirs to solicit them. That includes creditors and potential litigants.

The living trust keeps your private business private. If discretion is important, or if you have a family with a history of battling over assets, a trust could be a good move for you.

Trusts can also be used to give very specific information about what you want to happen to your assets. You can tell the trustee to provide gradual distributions of assets to beneficiaries over extended periods or stipulate the conditions they need to meet to receive an inheritance.

Trusts are also used to manage assets if incapacity strikes. A trustee can be appointed, and the trust can be structured so that if you cannot manage your own affairs, they can use assets to pay household expenses and medical bills and manage the investments or other assets the trust owns.

Whether or not to create a living trust depends upon your own unique situation. What type of trust to establish also depends upon many different factors. An experienced estate planning attorney who understands the pros and cons of different types of trusts is your best resource when making this decision.

Remember that the trust needs to work alongside other aspects of your estate plan. If you have a last will and testament including certain assets and then place the assets in the trust, the directions of the trust will take precedence. You can leave whatever you want to whomever you want, but what is owned by the trust will be distributed regardless of the direction of the will.

Your best move is to contact an estate planning attorney and have them create your will and trusts in tandem for optimal results.

Reference: The Motley Fool (June 2, 2024) “Is a Living Trust Really the Best Way to Pass an Inheritance to Your Family?”

What are the Best Ways to Protect Digital Assets?

July 12, 2024

Boomers may be the last generation to use cash and paper checks for financial transactions. However, according to a recent article from GO Banking Rates, “6 Ways for Boomers To Preserve Their Digital Estate and Online Assets,” many have switched to digital wallets.

With the rise of digital finance, it’s crucial to stay vigilant. While hackers may be more skilled in the digital world, you have the power to protect your digital assets. Here’s what you can do.

Emails are rife with scammers. Even an email from your bank shouldn’t be trusted. Never click on links within an email—go to the website from your browser instead. “Phishing scams,” where an email from someone you know asks for quick action, should always be treated with the utmost care. Misspellings or weird URLs should be red flags to alert you to a scam.

Keep a close eye on financial accounts. Fraud is best detected early. Check for unknown charges on credit cards and bank statements. One common technique is to make a small charge on a credit card to see if it is detected, followed by a sizeable charge. Set up your accounts to send alerts for every transaction to fight this.

Don’t go online on unsecured networks. Your local coffee shop or library is not the place to conduct financial transactions. Public Wi-Fi networks are not secure, ever. It only takes one opportunity to clean out your bank accounts.

Take software updates on cell phones, laptops, tablets and desktop computers. Many software updates are sent when vulnerabilities are spotted. If you don’t take the software update, you could open yourself to hackers.

Go for the two-factor authentication. Some people feel that having to go through a two-step process to log into a favorite site is too much work. This added layer of security makes it harder for hackers to access financial information and access your systems. It’s worth the extra time.

Don’t use a wimpy password. Passwords are notoriously easy for hackers to figure out. Birthdays, pet names, street addresses and even the word “password” are common and quickly figured out. Did you know there’s software used to crack passwords? Hackers do. Make yours harder to figure out using a combination of letters, symbols and numbers.

While protecting your digital assets, don’t forget to protect your traditional assets. If you haven’t already secured your estate with a last will and testament and protected yourself with estate planning documents, like Power of Attorney, Healthcare Power of Attorney, Living Will, and medical directives, make an appointment with an experienced estate planning attorney. You’ll be glad to have both your digital and traditional assets protected.

Reference: GO Banking Rates (May 30, 2024) “6 Ways for Boomers To Preserve Their Digital Estate and Online Assets”

Don’t Leave for Summer Vacation without Proper Planning

July 11, 2024

Families excitedly leave their daily grind for vacations during summer, anticipating relaxation and adventure. However, amidst the packing and planning, there’s a crucial aspect often overlooked: legal planning to prepare for the unexpected. The inconveniences of traffic jams, flight delays, or returning to a disaster at home like pipes breaking seem minor compared to the potential chaos your loved ones may face if you become incapacitated while away. The lack of proper legal preparations could lead to significant complications, making a forgotten bathing suit the least of your worries.

The Risks of Not Planning before Summer Vacation

Situations change unexpectedly—accidents, illnesses, or unforeseen events don’t take a break during your summer vacation. Without proper documents, such as a will, power of attorney and healthcare proxy, as explained in a National Law Review article, your family could face daunting legal hurdles or disputes when stability is most needed.

Common Estate Planning Mistakes Due to Procrastination

Financial Disarray: Without a power of attorney, no one may be legally recognized to manage your finances should you become hurt or incapacitated while on summer vacation. This could freeze assets and complicate the care and support for your dependents.
Medical Decisions: A healthcare proxy is vital if you cannot make medical decisions for yourself. Without this, your loved ones may struggle to make crucial health decisions, leading to potential conflicts or delays in treatment.
Guardianship Concerns: For families with minor children, not designating a guardian in your will means the courts will decide who cares for your children if both parents are badly hurt or even pass away unexpectedly. The guardianship decision-making process can be lengthy and stressful, possibly leading to outcomes you wouldn’t have chosen.

Why Plan Before Your Summer Vacation?

Here’s why making estate planning part of your pre-vacation checklist is as important as packing your passport:

Peace of Mind: Knowing your affairs are in order allows you to fully relax and enjoy your time away.
Protection for Minor Children: Ensuring that you have a guardian designated in your will provides certainty about who will care for your children, no matter what happens.
Streamlined Legal Processes: An updated estate plan can simplify the probate process, making it easier for your loved ones to navigate what would otherwise be a complex legal system.

Steps to Take Now

Review and Update Existing Documents: If it’s been a while since you last reviewed your estate plan, now is the perfect time. Changes in your family, like a new child or marriage or changes in your assets, require updates to your plans.
Establish a Living Trust: Consider setting up a living trust to manage your assets. This can help avoid probate and ensure a smoother transition of your estate.
Consult with an Estate Planning Attorney: Professional advice is invaluable. An attorney can help ensure that all your documents are up-to-date and reflect your current wishes and circumstances.

Secure Your Summer with Proper Planning

Add estate planning to your pre-vacation to-do list as you prepare for your summer adventures. Like checking the weather or confirming your reservations, a check-up on your estate plan ensures you’re ready for any situation. This summer, let the only surprises be the fun and unexpected discoveries of your travels, not the avoidable legal entanglements that could await your return. Request a consultation with our estate planning team before your summer vacation to plan for the anticipated fun and unexpected consequences.

Key Takeaways:

Estate Planning is Essential: Just as you wouldn’t leave for a trip without an ID, don’t overlook the importance of having your estate planning documents in order before you go. This includes having a valid will, power of attorney and healthcare proxy.
Protect Your Family: Ensure that your children and financial dependents are safeguarded by designating guardians and providing for their care in your estate plan. This action prevents courts from having to make these critical decisions on your behalf.
Avoid Legal Complications: Having your estate planning documents ready and updated minimizes the risk of legal issues and familial disputes, especially in unforeseen circumstances like accidents or illnesses during your vacation.
Consult an Estate Planning Attorney: Professional advice is crucial. An attorney can provide guidance tailored to your family situation and financial circumstances, ensuring that your estate plan meets all legal requirements and accurately reflects your wishes.

Reference: The National Law Review (Sep. 12, 2023) “Don’t Wait until Time Is Up”

What Does an Executor Need to Do?

July 5, 2024

Being named an estate executor is an honor and a big task. It is an honor because being named executor means your family member or friend trusts you implicitly enough to put you in charge of their estate when they are gone. It’s also a big task, with many moving parts to manage, which is the topic of a recent article from Kiplinger, “Eight Steps to Take When Settling an Estate as the Executor.”

You may feel like you must accomplish all of the tasks as soon as possible. However, working through an estate takes time. As a fiduciary, the executor must prioritize the decedent’s desires and the estate’s interests.

Managing expectations for the executor and heirs. It can take anywhere from two months to five years to settle an estate, depending upon its complexity and how much planning has been done. There is always the brother-in-law who knows better than anyone else how things should be handled and how long it should take. Ignore this.

Death certificates. An early task in the process is working with the funeral home to arrange memorial services, burial, cremation, or whatever the decedent wanted. Request ten original death certificates, since the probate court and financial institutions will want original certificates, which may or may not be returned.

Where are the estate documents? To file for probate, you (or an estate planning attorney) will need the last will and testament, trust documents, titles for cars or boats, deeds for the home, etc. ou should also try to locate a letter of instructions or intentions. This is not legally binding but can provide more insight into the person’s wishes.

Make a list of financial institutions, life insurance, and other assets. After you’ve been an executor and seen how complicated it becomes when you don’t have this list, chances are good you’ll start creating one for your own executor. A list of all financial institutions where accounts are held, the name of a financial advisor, estate planning attorney, or CPA, and information about all insurance (life, health, car, auto, home, etc.) spares the executor from having to conduct a scavenger hunt to identify these assets. Start a spreadsheet or a handwritten notebook to track every step you take with these assets, from who you speak with, what is said, best contact emails and phone numbers, etc.

Contact Social Security and any pension custodians. You’ll need to notify SSA and pension companies to have payments stopped and any benefits paid to the estate.

Find digital assets. Here’s where it gets tricky. Traditional assets often turn up when statements are mailed. However, if all statements are being made through email, you’ll need to log into the person’s computer and start looking for accounts, including financial accounts, credit cards, subscriptions, loans, leases and recurring charges. You’ll also need to notify the three credit bureaus. Look for a computer file or a printout of all accounts with passwords, including social media.

Contact the HR department if the person was still working. If the person has passed, let the HR department know. You may need to do some paperwork concerning retirement plans, health benefits and compensation for unused vacation time. Let the financial aid office know if a minor child is away at college. The student might now qualify for assistance.

Don’t be averse to getting professional help. Talk to the person’s estate planning attorney, financial advisor and CPA. If your loved one died without making a will, you’ll need help managing the probate process and figuring out what, if any, debts need to be paid. The estate planning attorney will also help you navigate any estate taxes, both on a federal and state level.

Reference: Kiplinger (April 3, 2024) “Eight Steps to Take When Settling an Estate as the Executor”

Why Unmarried Couples Need Protection of an Estate Plan

July 3, 2024

Couples decline to marry for a variety of reasons. Some are pragmatic, such as protecting health insurance eligibility. Taxes are another reason, as is qualifying for government benefits, like Medicaid or needs-based student financial aid. However, a recent article from the Journal of Accountancy, “Forgoing marriage? Estate planning for unmarried couples,” explains why unmarried couples must protect themselves from life’s unexpected but inevitable events.

There is an old saying that marriage is the cheapest estate plan available, and in part, this is true. Here’s what unmarried couples can do to protect themselves.

How are assets titled? Having the home titled as a joint tenancy/ownership with the right of survivorship protects both partners. If one partner dies, full ownership automatically switches to the other partner, with no need for court documents or other paperwork.

Beneficiary designations. Each partner should review the beneficiary designations on all applicable financial accounts and products. This includes life insurance, pensions, retirement accounts, and, if possible, bank accounts. If the couple doesn’t want to make each other joint owners of the bank accounts, see if they can be added as beneficiaries.

Cohabitation agreement. This document clarifies everything from financial responsibilities during and after the relationship, from who will care for a shared pet to the distribution of jointly owned property if there is a breakup. Think of it as a prenup for unmarried people.

Power of Attorney. This allows the partners to step in and manage each other’s affairs if one should become incapacitated. It’s also effective if one person travels and needs the other partner to manage daily financial matters.

Advance Care Directive. This document states a person’s wishes about medical care if they cannot communicate on their own. It should include a Health Care Power of Attorney, allowing the partners to make medical decisions for each other. Without it, adult children, siblings, or parents will be the only ones who can make these decisions. This will also permit the partners to access personal health information for each other during an illness or an emergency.

Last Will and Testament. Distribution of property or assets not owned jointly takes place through the will. The will is also used to name an executor in charge of the estate and carrying out the instructions in the will, as well as a guardian for minor children. If there is no will, an unmarried surviving partner will have no control over any property or assets. Without a will, the laws of intestacy take control, and usually surviving children, parents, siblings and even distant cousins who are related by blood come before the unmarried partner.

Trusts. If the couple wishes to keep their possessions and distribute them privately, a trust can be created to own assets, with the trustee being one partner and the successor trustee being the other. Couples with minor children, shared real estate investments, or assets in more than one state may find using trusts more efficient than passing assets through a will. Assets in a trust are not subject to any instructions in a will, do not become public and do not go through probate.

A consultation with an estate planning attorney can provide unmarried couples with a clear path to protect each other for the rest of their lives. This is the peace of mind provided by an estate plan.

Reference: Journal of Accountancy (April 30, 2024) “Forgoing marriage? Estate planning for unmarried couples”

Inheriting a House? Navigate Your Options and Responsibilities

July 1, 2024

Inheriting a house can be a life-changing event with emotional and financial implications. Understanding your options and obligations is critical, whether you sell it, keep it, or rent it out. Insights from LendingTree show you how to make the most of your inheritance.

What’s the Legal Process of Inheriting a House?

When inheriting a house, you don’t immediately receive the title in your name. The inheritance process involves probate, where a judge reviews the will and appoints an executor to carry out the deceased’s will. The executor handles responsibilities like insurance, identifying debts or liens and paying utilities. They also distribute belongings and manage property taxes. This ensures that the estate’s assets settle any outstanding debts before you receive ownership.

What Should You Do when Inheriting a Home?

When you’re in line to inherit a home, there are five steps you should take immediately.

Communicate with the Executor: Establish a clear line of communication with the executor. This will help you learn the necessary information and simplify the transfer process.
Coordinate with Co-Heirs: Work with the others if you are one of several heirs. Avoid costly disputes by deciding whether to sell, keep, or rent the property.
Get an Appraisal: An appraisal calculates the property’s value. This informs your decision to keep, sell, or rent the home while informing you of tax liabilities.
Evaluate Debts: Identify any liens or debts tied to the property and compare them against the house’s value. Understand the financial implications and incorporate that into your decision.
Seek Professional Advice: Consult estate planning attorneys, accountants and financial advisors. These professionals can clarify ownership-related problems, such as debt obligations and inheritance taxes.

What Should You Do with the House?

Moving Into an Inherited House

Moving into the inherited house can provide a new residence or vacation home. However, this option can be costly due to mortgages, taxes, repairs and insurance.

Renting Out an Inherited Home

Renting out the property can provide passive income, while keeping it in the family. Buy out other heirs or work with them to share costs and rental income.

Selling Your Newly Inherited Home

Selling the house is a straightforward way to obtain immediate cash. The proceeds can help pay off debts tied to the house, and the remaining proceeds will go to the heirs.

How Can You Finance an Inherited House?

If debts and taxes are associated with the house, that doesn’t mean you need to sell. There are many ways to finance the home and keep your inheritance.

Mortgage Assumption: Take over the existing mortgage if its terms are better than what you’d get with a new loan. The lender must approve the assumption.
New Purchase or Refinance Mortgage: You can obtain a new mortgage or refinance to put the house in your name. This option is particularly useful when the property has a reverse mortgage.
Cash-Out Refinance: Refinance the mortgage with a cash-out option to tap into the home’s equity to cover expenses, like buying out heirs or making repairs.
Investment Property Loan: Mortgage an investment property if you plan to rent the house.

Inheriting a House? Schedule a Consultation Today

Navigating the process of inheriting a house requires legal, financial and practical knowledge. You can get this knowledge by scheduling a consultation with our estate planning attorneys. We’ll listen to you and provide tailored advice about handling your inheritance.

Key Takeaways

Inheriting a House: The probate court oversees the inheritance process, and the executor handles legal and financial responsibilities.
Options: Move in, rent out, or sell the property based on financial goals and agreements with co-heirs.
Financing: Explore mortgage assumptions, new or refinanced mortgages and other financing options.

Reference: LendingTree (Nov. 16, 2021) “Inheriting a House? Here’s What to Expect”

Estate Planning Questions for Couples with a Big Age Gap

June 28, 2024

Even if it was never an issue in the past, when couples with a significant age gap reach their 60s and 70s, the age difference can present challenges. When one partner is ten or more years younger than the other, assets need to last longer, and the impact of poor planning or mistakes can be far more complex. The article in Barron’s “Big Age Gap With Your Spouse? What You Need to Know” explains several vital issues.

Examine healthcare coverage and income needs. Health insurance can become a significant issue, especially if one partner is old enough for Medicare and the other does not yet qualify. How will the couple ensure health insurance if the older partner retires and the younger depends on the older partner for healthcare? The younger partner must buy independent healthcare coverage, which can be a budget-buster.

Be strategic about Social Security. Experts advise having the older spouse delay taking Social Security benefits if they are the higher-income partner. If the older spouse passes, the younger spouse can get the bigger of the two Social Security benefits. Delaying benefits means the benefits will be higher.

Planning for RMDs—Required Minimum Distributions. Roth conversions may be a great option for couples with a significant age gap. Large traditional tax-deferred individual IRAs come with large RMDs. When one spouse dies, the surviving spouse is taxed as a single person, which means they’ll hit high tax brackets sooner. However, if the couple converted their IRAs to Roths, the surviving spouse could withdraw without taxes.

Estate planning becomes trickier with a significant age gap, especially if the spouses have been married before. Provisions in their estate plan need to be made for both the surviving spouse and children from prior marriages. An estate planning attorney should be consulted to discuss how trusts can protect the surviving spouse, so no one is disinherited. Beneficiary accounts also need to be checked for beneficiary designations.

Couples with a significant age gap need to address their own mortality. A younger partner who is financially dependent on an older partner needs to be involved in estate and finance planning, so they know what assets and debts exist. Life has a way of throwing curve balls, so both partners need to be prepared for incapacity and death.

Plans should be reviewed more often than for couples in the same generation. A lot can happen in six months, especially if one or both partners have health issues.

Reference: Barron’s (May 19, 2024) “Big Age Gap With Your Spouse? What You Need to Know.”

What Do You Do If Elderly Family Member Is Being Financially Abused?

June 26, 2024

Financial elder abuse is when a family member, caregiver, or another individual illegally or improperly uses an elderly person’s assets for their own personal gain without the knowledge or understanding of the elderly person. A recent article from The Sun Times News, “Elder Financial Abuse Can Be A Family Affair,” notes the coming “Great Wealth Transfer” of Baby Boomer assets could lead to a dramatic increase in elder financial abuse.

Even minor memory loss can be exploited by scammers and, sadly, family members. With nearly seven million Americans having moderate cognitive issues, the possibility of financial abuse is growing. Boomers live longer than any previous generation, translating into huge healthcare costs in post-retirement years. At the same time, their children and grandchildren face challenges, including student debt and high homebuying costs. The combination of these issues isn’t pretty.

A contributing factor is the increased misinformation about Medicaid, wills, trusts, guardianship and power of attorney. When seniors make their wishes known and formalize them through an estate plan and trusts to protect their assets, the chances of them becoming victims of exploitation can be minimized.

In many cases, isolation leads to vulnerability. One woman allowed her son’s ex-wife to move into her Colorado home to live with her elderly mother. The ex-wife fell victim to scammers herself and convinced the elderly mother to send two checks totaling $70,000 to two scammers, one claiming to be running a children’s mission in Nigeria and another rescuing animals in Malaysia. The elderly woman’s bank didn’t question the large checks, which it should have. The ex-wife also forged checks worth more than $10,000 on the elderly woman’s account. The promised caregiving never happened, and while the woman was arrested and prosecuted, the family will never recover the money as the ex-wife is unemployable—she was a bookkeeper.

The National Center on Elder Abuse suggests only one in 24 cases of elder abuse is reported to authorities. If abuse of any kind is suspected, it should be reported immediately to the police in the jurisdiction where the senior lives. Financial statements, bank statements, credit card bills, canceled checks and evidence must be provided. Even if you don’t have evidence, suspected abuse should be reported.

Families can be torn apart when heirs battle over inheritances. Two means of prevention are creating an estate plan by an experienced estate planning attorney, with trusted family members or professionals to serve as Power of Attorney and executor. The second is to maintain ongoing contact with the senior, if possible, in person and, if not, via phone calls, video calls and visits. The more involved you are with an aging person’s life, the better your chances of uncovering or preventing financial elder abuse.

Reference: The Sun Times News (May 8, 2024) “Elder Financial Abuse Can Be A Family Affair”

Estate Planning Blog

Serving Clients Throughout North Central Missouri

What are the Benefits of Gifting to Grandchildren?

Understanding Estate Taxes

How Can 529 Accounts Help?

What are the Limits on Gifting?

Should You Consider a Trust?

What are the Types of Trusts?

Do Right by Your Loved Ones

Key Takeaways

The Risks of Not Planning before Summer Vacation

Common Estate Planning Mistakes Due to Procrastination

Why Plan Before Your Summer Vacation?

Steps to Take Now

Secure Your Summer with Proper Planning

Key Takeaways:

What’s the Legal Process of Inheriting a House?

What Should You Do when Inheriting a Home?

What Should You Do with the House?

Moving Into an Inherited House

Renting Out an Inherited Home

Selling Your Newly Inherited Home

How Can You Finance an Inherited House?

Inheriting a House? Schedule a Consultation Today

Key Takeaways

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