Varian Law LLC

Home Repair Scams That Target Seniors

Legitimate home improvement companies usually do not have to knock on doors to get business. Only hire companies who your friends, relatives, or neighbors have used and recommend.

Aging adults are the favorite targets of home improvement scammers. The con artists create a climate of fear that the house is a fire hazard or the senior will face much more expensive repairs or high utility bills if they do not hire the swindlers to do the improvements. Here are some tips on how to help your loved ones avoid being victimized by home repair scams that target seniors.

Types of Home Improvement Scammers Who Rip Off Seniors

There are two main types of home improvement scammers – visiting crooks and locals.

• The visiting fraudsters, called “travelers,” swoop into a neighborhood, promise to do work, collect upfront payments so they can supposedly buy materials, then disappear without doing the work.
• The local con artists, called “woodchucks,” trick seniors into having unnecessary work done. These people usually knock on the senior’s door and offer to trim the trees, which is how they got the nickname of woodchucks.

Taking Advantage of the Elderly Homeowner

• Unnecessary repairs. These schemes involve frightening the unsuspecting senior into thinking there is a problem that does not exist. For example, a pest control company salesperson might carry a container of dead termites and place them around the outside of a house. They then sign up the aging homeowner for termite removal and prevention services, costing thousands of dollars and continuing several times a year for many years.
• Not actually doing the work. If the older adult has mobility issues, the con artist might collect payment to do work but not actually perform the services. For example, the fraudster might charge the senior to perform annual servicing and expensive repairs, like replacing parts on a rooftop air conditioning unit. The crook knows the homeowner will not climb up on the roof to see if the repair person did any work, so he does not do any.
• Serial repairs. When a con artist encounters an elderly homeowner with cognitive or memory issues, he might rip her off by performing the same unnecessary repairs over and over, taking advantage of the senior’s confusion or memory issues. Some older adults have been swindled by people who replaced their attic insulation 12 times in six years, caulked windows eight times, and resodded the yard nearly every year.

How to Spot a Home Repair Scammer

The Federal Trade Commission offers these tips to help you avoid getting ripped off by unscrupulous home improvement companies. Do not do business with a contractor who:

• Is not licensed. Your local building department or consumer protection agency can tell you the licensing and bonding requirements in your area.
• “Just happens to be in the area” doing work for your neighbors. Another tip-off is if they say they have some materials left over from another job.
• Puts pressure on you to make a decision right away, without contacting anyone or taking the time to think about it.
• Has any shady financial practices, such as requiring all the money up front, insisting on cash payment or wanting you to finance the work with a lender the contractor knows.

Do not hire door-to-door contractors. Legitimate home improvement companies usually do not have to knock on doors to get business. Only hire companies who your friends, relatives, or neighbors have used and recommend. Insist on a written contract and have a trusted friend or relative read the agreement, before you sign it. Check out the person or company online and with local consumer protection groups.

References:

AARP. “It Is the Season for Cons in Home Repairs.” (accessed June 27, 2018) https://www.aarp.org/money/scams-fraud/info-2015/home-repair-scams.html

Federal Trade Commission. “Home improvement scams are no laughing matter.” (accessed June 27, 2018) https://www.consumer.ftc.gov/blog/2015/06/home-improvement-scams-are-no-laughing-matter

How to Choose an Elder Day Program

When you find a good fit in an adult day center, both you and your aging loved one can be much happier.

If you feel uncomfortable leaving an aging loved one at home alone all day, you might want to consider an adult day center (ADC). Because the senior is vulnerable, you should make sure the ADC is a safe and appropriate setting. For the happiness, well-being and preservation of cognitive function of the older adult, the ADC should not be merely a place to park people during the daytime. Read on for tips on how to choose an elder day program.

Who Should Consider an Adult Day Center?

It is optimal for seniors to start attending an adult care center, when they can fully participate in activities and engage in social interactions. The setting will feel familiar and safe to them if their condition changes down the road. If your loved one needs supervision during the day, an ADC can get a good option. Other valid reasons to seek out an ADC is if:

• She experiences anxiety, loneliness, isolation or depression when left alone.
• He struggles to organize his daily activities.
• She wants social interaction.
• Trying to provide the level of attention she needs causes you to experience stress, depression, or other adverse health impacts.

What to Look for in an Adult Day Center

The adult day center needs to meet the needs of both you and your loved one. For the aging adult, the ADC should provide:

• Activities. The ADC should not park people in front of the television. There should be organized, staffed activities to keep the attendees engaged and interacting socially.
• Meals. Make sure the ADC provides nutritious, satisfying meals and snacks and accommodates dietary restrictions.
• Specialized care. Many seniors need services tailored to their unique requirements. If your loved one needs ongoing medical care for kidney disease, diabetes, or some other medical condition, the ADC should have appropriately trained staff members to provide that service.
• Alzheimer’s program. Since many aging adults deal with Alzheimer’s disease or other dementia or cognitive challenges, a high-quality ADC will provide staffed activities like exercise, art, or music programs intended to engage people with these issues.

The ADC must also meet your requirements, including:

• Affordable. It will not help your stress, if you cannot afford the expense of the ADC. Work with your local office on aging to find help with the costs of the program.
• Hours. The center must be open when you need it, such as when you are at work.
• Flexible. The program should accommodate your schedule. For example, if you only need to have your loved one visit an ADC a few hours a day or a couple of days a week, you should not select one that charges everyone for 40 hours a week.
• Transportation. Some centers provide transportation to and from the facility. If you, for example, ride your bike or take public transportation to work or work in a home office, transportation can be an essential service.

When you find a good fit in an adult day center, both you and your aging loved one can be happier. Visit multiple facilities and narrow it down to two or three acceptable choices that meet all the deal-breaker needs - then let your loved one select the center he likes the best.

For additional information, you should consult with an experienced elder law attorney.

References:

National Adult Day Services Association. “Choosing a Center.” (accessed June 27, 2018) https://www.nadsa.org/consumers/choosing-a-center/

AgingCare.com. “How to Pick an Adult Day Care Center.” (accessed June 27, 2018) https://www.agingcare.com/articles/how-to-pick-adult-day-care-center-138263.htm

Alzheimer’s Association. “Adult Day Centers.” (accessed June 27, 2018) https://www.alz.org/help-support/caregiving/care-options/adult-day-centers

Top IRS Scams That Target Seniors

Some schemes are so sophisticated that you can lose thousands of dollars without ever giving anyone information about yourself.

The IRS recently releases its list of the “Dirty Dozen” tax scams. Although we are all at risk of falling victim to these rip-offs, the elderly are more vulnerable to certain ones. Protect your aging loved ones by reading about the top IRS scams that target seniors.

First of all, criminals are the ones perpetrating these con games, not the Internal Revenue Service. If you think you will never be a victim of tax fraud, think again. Some of these tax schemes are so sophisticated, that you can lose thousands of dollars without ever giving anyone information about yourself.

Stealing Your Refund

In this scam, someone files a fraudulent tax return, claiming to be you. He claims lots of deductions and files a return that results in the IRS sending him – not you – a refund. When you later try to file your taxes, the IRS rejects it, saying that you already filed. If you are entitled to a refund, the IRS might refuse to give it to you because they already paid a refund to someone using your Social Security number.

Unethical Tax Preparers

Every year, storefronts pop up offering to prepare tax returns. Some of these businesses are legal entities.  However, others exist for the sole purpose of collecting vital information, like Social Security numbers, dates of birth, addresses, names of spouses and children and account numbers of checking, savings, and investment accounts. If you went to a tax preparer who closed up shop right after tax season, and then you experience identity theft, you should have law enforcement investigate the tax preparer.

Fake Charities

We all get the phone calls. They go something like this: “Hi, I’m from the [name that sounds similar to the name of a well-known legitimate group] charity.” They then ask for a donation over the phone. Making this donation would require you to give a total stranger your credit card information, name and address. These calls are dangerous in two ways. A con artist could be scamming donations for a fake charity, collecting what adds up to thousands of dollars from kind-hearted people and the crook could also be gathering information to perpetrate identity theft.

Impersonating the IRS

One swindle involves calling people and claiming to be the IRS. The con artist threatens the person with jail time if she does not pay him hundreds or thousands of dollars over the phone, or he directs her to buy a gift card and call him with the card number. The IRS does not use these tactics. Never, ever give your credit card or bank account information to someone who calls you, regardless of who they claim to be. Ask for their contact information, then have a trusted friend help you check out the entity online. Share the information with law enforcement. If someone calls and tells you to buy a gift card and give them the card number, go straight to law enforcement.

Officials are trying to catch people who rip off seniors and steal their life savings. Talk with your aging loved ones to make sure they understand and can avoid these fraudsters.

References:

IRS. “IRS wraps up ‘Dirty Dozen’ list of tax scams for 2018; Encourages taxpayers to remain vigilant.” (accessed June 27, 2018) https://www.irs.gov/newsroom/irs-wraps-up-dirty-dozen-list-of-tax-scams-for-2018-encourages-taxpayers-to-remain-vigilant

How to Select a Memory Care Facility

Visit at least three facilities, talk with people whose parents are in specialized care and observe how happy and active residents and staff seem to be at the centers.

When your loved one with Alzheimer’s or other memory issues needs long-term care, you should not move them into a nursing home without asking a lot of questions to make sure it is the right facility. Unless you have faced this situation already, you might not know what to evaluate when considering the needs of your aging relative. Here are some pointers on how to select a memory care facility for your loved one.

STEP ONE: Assess the Needs of Your Loved One

Memory care facilities are not “one size fits all.” Many people make the mistake of lumping all seniors into one or two baskets, but we remain diverse and unique as we age. Before you can find the right facility for your relative, you need to assess his/her current status. Evaluate these areas of needs and functioning:

• Whether he/she has diabetes, heart disease, or some other significant medical condition, in addition to his/her need for memory care, and if he/she needs regular medical treatment.
• Whether he/she needs help with daily living activities like eating, bathing, or toileting.
• Whether he/she needs constant supervision.
• His/her need for assistance with sitting, standing, walking, and transferring at the bed or tub.
• His/her history of wandering, aggression or behavior issues.

After writing down the details of your loved one’s current condition, you can look for a facility that will meet his/her needs. For example, if he/she needs dialysis or 24/7 supervision, do not waste your time looking at centers that do not provide those services.

STEP TWO: Evaluate the Facility’s Ability to Meet Your Relative’s Needs

• Many long-term care centers are grossly understaffed. They rely on the employees with the least training and lowest paychecks to provide the lion’s share of the direct patient care. When the underpaid staff members are unfairly overworked, they can become resentful and take it out on the residents. Find out the staff-to-resident ratio for the day shift, evenings, nights and weekends. Have the care facility break down the staff by those who provide direct patient care and those who do not, for example, maintenance, janitorial, cooking, laundry and administration.
• Get a written statement of the center’s policies on notifying families about well-being, handling medical emergencies, fee structures itemized for housing and care, how they protect residents from physical and financial abuse and the services the facility does and does not provide. Make sure the facility does not over-medicate residents to make them less demanding or difficult. Find out the deposit refund policy, in case the placement does not work out for your loved one.
• Care for memory issues. When your loved one is struggling with cognitive issues, a “cookie cutter” nursing home will not do. With specialized care, many aging people can retain their alertness and engagement for a longer period of time. Find out what memory or cognitive-focused care the facility provides, such as light treatment, circular walking paths, special dining programs, dementia care and Parkinson’s care. Learn what therapies the center can offer, like art, music, and pet therapy. See if the residents live in cottages or a more traditional institutionalized setting.

STEP THREE: Making a Decision

At the end of the day, you have to make the choice of the memory care center for your loved one. Tour at least three facilities, talk with people whose parents are in specialized care and observe how happy and active residents and staff seem to be at the center. Trust your instincts, if something feels wrong about a place. You should include your loved one in the process. After you find two or three acceptable options, let your loved one select from those choices.

This article covers the general law, but regulations are different in every State.  Be sure to talk with an elder law attorney near you as you explore your options.

References:

Alzheimers.net. “15 Questions to Ask When Exploring Memory Care Options.” (accessed June 27, 2018) https://www.alzheimers.net/2014-04-24/questions-to-ask-about-memory-care/

Kiplinger. “How to Choose a Memory Care Unit.” (accessed June 27, 2018) https://www.kiplinger.com/article/retirement/T027-C000-S004-how-to-choose-a-memory-care-unit.html

A Place for Mom. “Memory Care Checklist.” (accessed June 27, 2018) https://www.aplaceformom.com/planning-and-advice/articles/memory-care-checklist

 

What Is a Long Term Care Ombudsman?

An ombudsman can help a resident of a long-term care facility feel as if she is not alone or at the mercy of the large corporation that owns the facility.

If you have a loved one living in a long-term care facility, you need to know about the ombudsman program.  If your relative has problems or complaints while at the nursing home, an ombudsman can be a valuable resource. Unless you have already used one, at this point you might be asking, What is an ombudsman?

Ombudsmen try to resolve disputes and provide advocacy services. Some corporations and government agencies use ombudsmen for alternative dispute resolution, but this article will focus on the use of ombudsmen in the context of long-term care facilities.

The Ombudsman Program

The Older Americans Act, a federal law, requires every state to create and maintain an ombudsman program to advocate for improvements and handle complaints at nursing homes and other long-term care (LTC) centers. With their specialized training, an ombudsman can also help you when you are trying to find an LTC facility for your loved one.

At the federal level, the Administration on Aging (AOA) administers the nationwide ombudsman program. Your state’s Unit on Aging will likely be where you can find your ombudsmen. With more than 7,000 volunteers and more than 1,300 paid staff members, the program investigates around 100,000 complaints a year and gives information to several hundred thousand people.

What the Ombudsman Program Means for Your Loved One

Long-term care ombudsmen have many duties, including:

• Give the public information about nursing homes and other LTC facilities and the services they offer.
• Inform residents about their rights and what they should expect by way of quality care at a nursing home.
• Resolve complaints against LTC facilities.
• Advocate for residents who experience problems at their nursing homes.
• Educate LTC facilities about the level of care the government expects them to deliver.

What You Need to Know About Working with an Ombudsman

The ombudsman program is an unfamiliar concept to most people. When you know a little more about what to expect when working with an ombudsman, you can make an informed decision about whether to use the program.

• Cost - It will not cost you anything to use the services of someone in the federal LTC ombudsman program.
• Confidentiality – When you contact an ombudsman program by telephone, writing or in person, they will keep your information entirely confidential. If you want them to resolve a dispute and advocate for you, however, they will likely need to reveal your identity. However, they will only do this with your permission.
• Who they help – Sometimes the elderly resident is unable or afraid to reach out to the ombudsman. Not to worry – you can ask the ombudsman to step in on behalf of the resident. The advocates can help people in nursing homes, assisted living centers, board care homes and other similar adult care facilities.

An ombudsman can help a resident of a long-term care facility feel as if she is not alone or at the mercy of the large corporation that owns the facility. It allows you to level the playing field when you have a complaint about the care your loved one receives.

This article is about the general law, and your State might have different regulations.  Always consult with an experienced elder law attorney when dealing with such matters.

References:

Caregivers.com. “What is an Ombudsman?” (accessed June 27, 2018) https://www.caregivers.com/blog/2016/04/what-is-an-ombudsman/

National Consumer Voice for Quality Long-Term Care. “About Ombudsman Program.” (accessed June 27, 2018) http://ltcombudsman.org/about/about-ombudsman

Tax Overhaul Limits Income Tax Deductions

Income Tax Deductions for State and local taxes now face a new limit.

One of the more controversial changes in the new Federal tax laws passed in late December was that the itemized deduction for State and local taxes is now limited to $10,000.

Some State governments have tried to figure out a way around the limit for their citizens.  However, the IRS shot most of those down.  However, some estate planning attorneys might have found a solution, according to Bloomberg in "How the Rich Can Dodge Trump's Property Tax Hike."

The idea is to first create an LLC in a non-income tax State, such as Delaware or Alaska.  Real estate ownership is then transferred to the LLC. After that, several non-grantor trusts are created. Ownership of the LLC is then divided up and transferred to the new trusts. When tax time comes around each non-grantor trust can arguably take a $10,000 deduction for any property taxes that were paid by the LLC.  Effectively, the new deduction limit can be rendered moot.

Of course, the solution still faces the scrutiny of the IRS.

Reference: Bloomberg (June 15, 2018) "How the Rich Can Dodge Trump's Property Tax Hike."

Estate Planning During A Marital Separation Can Be Challenging

Spouses retains full rights to the marital estate unless there is a divorce.

There were two deaths in the celebrity world recently that involved marital separations, highlighting a peculiar issue in estate law, according to Forbes in "Kate Spade, Anthony Bourdain And Estate Planning When You Are Separated."

The deaths were of fashion designer Kate Spade and celebrity chef Anthony Bourdain, who both committed suicide while being separated from their spouses.  If Spade and Bourdain had gotten divorces, then their spouses would not be entitled to any portion of their estates.  If the spouses were included in the estate plan, then, after a divorce, they would ordinarily be “written out” by most States’ laws.  However, that does not happen when a couple is merely separated.

The spouse of a deceased person generally retains full rights to the marital estate. That means if there is no estate plan, the spouse will ordinarily receive the entire estate through the laws of intestate succession. If there is an estate plan, then the spouse receives anything the plan says he or she gets.  Moreover, if the spouse does not receive enough of the total assets of the marital estate, then the spouse can usually elect to take his/her spousal elective share (the amount varies between States).

A person separated from their spouse or contemplating a divorce should make his/her first call to a matrimonial attorney and his/her second call to an estate planning attorney.  Any actions that a spouse desires to take with respect to changing their estate plan should be accomplished upon separation and before the filing of a divorce complaint. 

An experienced estate planning attorney will be able to assist you with addressing the many complex estate planning issues that surround a marital separation or divorce.

Reference: Forbes (June 12, 2018) "Kate Spade, Anthony Bourdain And Estate Planning When You Are Separated."

Will Social Security Disappear?

Opponents often claim that Social Security is going broke and will soon be bankrupt.  However, that most likely is not true.

A recent government report is being used by opponents of Social Security and government spending as ammunition to charge that if something is not done, then Social Security will go broke in 2022.  But a slightly contrary view is presented in Forbes in "Fake News: Why Social Security Isn't Going Broke."

Social Security currently takes in more money every year than it pays out in benefits. That has created a surplus in the Social Security Trust Fund. What will happen in 2022 is that, due to demographic changes, Social Security will start paying out more than it takes in. However, since there is currently a surplus, benefits will not have to change immediately. The surplus can be spent down and it should not run out until 2034.  When that happens, Social Security benefits will have to be cut since the program will only be able to pay out as much money as it takes in.

So Social Security is not doomed yet ... but the end is approaching if something is not done to fix it.

Reference: Forbes (June 18, 2018) "Fake News: Why Social Security Isn't Going Broke."

The Elderly Often Have to Learn to Enjoy Themselves

There are health benefits to being mentally and physically active.

People seem to have no problem learning how to have fun when they are young.  However, that often disappears when they enter the work force and began living an adult life.  But when they retire, they have the time to have fun again. It is somewhat rare, however, to see a group of elderly people at a park or recreation center having fun. They have forgotten what they once knew how to do, according to the Wills, Trusts & Estates Prof Blog in "A Lost Skill Among the Elderly: How to Have Fun."

What this means for retired people is that a lot of them spend a lot of time watching television for hours and hours at a time. While some television viewing is not going to hurt anyone, research suggests that elderly people who are mentally and physically active see significant health benefits. It would be better for elderly people to spend less time in front of the television and more time having fun.

Of course, not all elderly people are physically capable of playing the same games they did as a child. However, there are other activities available for the elderly in most places. 

Reference: Wills, Trusts & Estates Prof Blog (June 13, 2018) "A Lost Skill Among the Elderly: How to Have Fun."

Transferring Property After A Death Can Be Challenging

There is a lot of paperwork involved in transferring property/assets and it all needs to be done correctly.

Ownership of property/assets must be transferred from one owner to another after someone dies.  When someone passes away, that creates the need for a lot of paperwork that needs to be done at once, according to U.S. News & World Report in "How to Deal With the Paperwork Scramble After a Spouse Dies."  It is easy to get overwhelmed and make costly mistakes when there is that much paperwork to fill out and file in such a short period of time.  Those mistakes require even more paperwork and time to fix. People who are grieving and who do not know all the things that need to be done are prone to making numerous mistakes all the time.

Although every estate administration presents its own unique circumstances and challenges, the process of administering an estate in a modern world is usually much more complex and time consuming than most people realize. Estate administrations present the person administering the estate with numerous requirements and tasks that must be performed in a timely manner, and most people simply do not have the knowledge, the skill or the time required to properly complete them. Unfortunately, many people will attempt to administer the estates of their loved ones without professional assistance, and they eventually become frustrated, confused and intimidated when they encounter procedures/issues with which they are not familiar. As a result, such people either encounter substantial difficulty in completing certain tasks or unknowingly fail to fulfill all of their responsibilities (which will likely lead to some form of litigation or other adverse ramifications).

An experienced estate administration attorney can assist you with the many complex administrative tasks associated with the administration of an Estate.

Reference: U.S. News & World Report (June 19, 2018) "How to Deal With the Paperwork Scramble After a Spouse Dies."