The majority of American adults have not taken legal planning steps to organize and store their personal and financial information. In fact, only 68% of people over the age of 65 have a finalized will. Although taking these planning steps can be difficult, it is essential to have this information available to the family at the time of death.
Older adults find themselves increasingly faced with a bewildering universe of new situations about health, finances, housing, legal, and many other issues. Trying to keep up with all these moving targets is a daunting task for even the healthiest and most knowledgeable among us. However, when physical or mental health (or both) start to decline, dealing with these complex concerns can become overwhelming.
Even if family or friends try to help, they often lack the knowledge to deal with these subject areas confidently. Additionally, for loved ones trying to help from distant geographies, the frustration level can build to boil for all concerned.
Elder law focuses on the needs of older adults from a variety of angles. This specialty emerged because legal requirements in the later part of life and after death are numerous and complex. This blog explains some of the major areas covered in elder law.
In our last blog, Talking to Your Aging Parents About Money – Part 1, we explored ways adult children could start the conversation about money with their parents. Once the ice is broken, an opportunity to deepen the conversation presents itself.
The "money" subject is the first of several layers of important issues aging adults need to address. The following are major ones adult children need to discuss with their parents.
Most adults with aging parents rarely look forward to raising the subject of their elders' money. It's a scary topic because it involves a role reversal. Parents are supposed to teach their young children about money, not the other way around. Years later, adult children and their parents sometimes find it challenging to break out of this family dynamic. Yet, there comes a time when children need to talk to aging parents about plans for their money and other end-of-life planning topics.
Ideally, the time to talk to parents should happen before any crisis. Injury or illness can happen fast. If plans are not in place, decisions may be made quickly without sufficient information. This risk of causing irreversible mistakes is high. Even if plans have been made, failure to share them with adult children may put an effective plan at risk. Talking when parents can physically and mentally hold their own in the conversation provides a better foundation for good planning. In other words, the sooner, the better.
Here's an alarming fact. Between 50-70% of Americans 65 or older will eventually require some form of long-term care, according to 2020 figures published by the U.S. Department of Health and Human Services (HHS). What makes it particularly alarming is that fewer than half have done enough planning to cover the costs of long-term care. In a survey by The Associated Press-NORC Center for Public Affairs Research, 54% of respondents aged 40 and older said they had done little or no planning for these needs.
Benjamin Franklin famously said, "…in this world nothing can be said to be certain, except death and taxes." A corollary to this could be, "It's a certainty that families hate to talk about death and money."
Discussing money seems to be a challenging subject for even the most talkative families. A study showed that 44% of respondents found money the most challenging topic to talk about, more than religion or politics or even death. Yet, talking about money with others, especially family members, could help avoid significant financial problems.
Parents of adult children face two crucial money conversations – your money and their money.
Moving out of a family home after many decades seems akin to moving a mountain. If the move is to Assisted Living, the mountain can feel even bigger.
First, consider the situation. Often, such a move does not have a long planning runway. A sudden trigger event can start the process. Incidents like an accident (e.g., a fall in the home) or illness can put an abrupt stop to independent living and kickstart a frantic effort to move a loved one into an Assisted Living or Skilled Nursing setting.
Cellular phones and access to the internet has drastically changed the lives of people across the world. For the first time in history, humans can communicate with each other and access answers to questions instantly, from pretty much anywhere. The benefits are vast and incredible. At the same time, while older adults are using the internet and smartphones more frequently, there are risks.
Internet and phone scams have become a growing issue as technology has evolved and become more advanced. Scammers use internet software to take advantage of people by using fraud schemes that trick people into giving them money. In 2018, the FBI Internet Crime Complaint Center received 351,936 complaints of internet and phone crimes, accounting for more than 2.7 billion dollars in losses. Of all scam victims, seniors are targeted more than any other age group because they tend to have more time and willingness to listen. They are also often more sympathetic and trusting than younger generations.
Scammers use various tactics, such as acting friendly, helpful, or sympathetic, to get people to fall for their schemes. In some cases, scammers inflict fear on their victims to scare them into paying them. Scammers are aware that many older adults have a lot of money in their savings accounts after retirement. They are also considered low-risk targets because these scams often go unnoticed and unreported due to the lack of technical knowledge.
The best way to avoid internet and phone scams is to be aware of common scams, including the top ten scams targeting seniors, found by the National Council on Aging (NCOA). It is then easier to identify and avoid falling for these scams:
The holidays are coming up! For many of us, that means it's time to shop and get everyone the perfect gifts. With the presence of the COVID-19 pandemic and social distancing restrictions, this year, shopping online is the way to go! Don't worry; you can still save money! In fact, shopping online provides many unique opportunities to ensure you are getting the best possible price. Read on to learn about seven different ways you can squeeze every penny out of your online shopping experience.