Varian Law LLC

Should You Buck the Conventional Wisdom of Diversifying Your Assets?

Financial advisors have hammered into our brains that we must diversify our investments. “Diversify, diversify, diversify” has become a mantra for the financial services industry just like “location, location, location” is for the real estate industry. Diversifying is touted as a way of spreading your risk.  However, some of the most successful investors do not follow this investment strategy. Here are some reasons why you might want to buck the convention wisdom of diversifying your assets.

Warren Buffett says diversification “makes very little sense, for those who know what they’re doing.” He holds concentrated positions in a few companies, rather than small pieces of dozens of companies. If you invest in many different companies, you will not have the time to keep track of all the information you need to know about them. Of course, he does not recommend that you invest in only one company. The Enron scandal demonstrated how easy it is to lose everything when you put all your eggs in one basket.

Even when the market is doing well, you are likely to get only average returns if your investments are spread among dozens of companies. Balancing stocks that are doing well with “safer” stocks that have more modest returns will result in a net return that can be mediocre, if not a complete wash. To keep up with the ever-rising costs of medical care and other expenses that matter when you are retired, getting a healthy return on your investments can make a difference on your cash flow.

Although diversification will keep you from getting wiped out, if you invest in only one stock and it fails, investing in 20 or 30 companies or more will not prevent your portfolio from losing value when the market takes a downturn. When the entire market tumbles, your diversified portfolio will lose value with the rest of the market.

How to Concentrate Positions and Spread Your Risk

Experts suggest that you can have the best of both worlds by choosing a few stocks in several uncorrelated sectors. Balancing investments in a higher risk industry with stock in a more stable sector can mitigate some risks while giving you the opportunity to possibly achieve a better than average return.

Concentrating positions in several stocks, rather than diversifying in dozens of companies, requires you to be knowledgeable and to stay informed about everything that could affect the value of those few companies. If you do not want to do the homework, it might be better for you to follow the conventional wisdom and settle for average returns.

This is not intended to serve as financial advice. Always do your own research, make your own financial decisions and hire the services of a professional to assist you.  Investments always carry risk.

References:

Forbes. “Here’s Why Warren Buffett and Other Great Investors Don’t Diversify.” (accessed July 25, 2018) https://www.forbes.com/sites/karlkaufman/2018/07/24/heres-why-warren-buffett-and-other-great-investors-dont-diversify/#7f0c0a334795

Retiring on the Road

“To a great extent, living on the road in an RV lets you do what you want, when you want, where you want and with whom you want.”

We all know people who daydream for years about buying an RV and hitting the road when they retire. They want to travel the country, collect a fridge magnet from every state, and see the world’s largest ball of twine. They want freedom from a mortgage, yard work and being tied down to one place. If this describes you and you are wondering if you could make this dream a reality, here are some tips from seniors who live on the road in RVs.

Test Drive the Lifestyle

Rent an RV for a couple of weeks or a month, to see if it feels right for you. Do you and your spouse or partner in adventure love living on the road, or are you sick of each other’s faces by the end of the first week? Before you sell your house and buy an RV, be certain that you will be happy on this non-traditional path. You should make sure that driving a massive vehicle thousands of miles through city traffic jams, mountain passes, narrow bridges and road construction does not give you panic attacks.

Be realistic about the costs

Although a smaller RV can be a little easier to drive than one the size of a tour bus, the more expensive (larger) models are more likely to have back-up cameras and other driving conveniences. The smaller, less expensive RVs have precious little storage or living space, and tend to ride as uncomfortably as a no-frills rental moving van. If you want a smoother ride with space to stretch out and you do not want to have to remove 18 things to reach the item you are looking for, be prepared to shell out much more money.

A budget RV suitable for long-term travel can cost around $60,000, and a luxurious road yacht can run you up to $600,000 or more. Most RVs tend to cost between $90,000 and $180,000.

Unlike most real estate, RVs are depreciable assets, meaning that they will go down in value. Factor in the cost of gas, routine maintenance, repairs, insurance, personal property taxes and the costs of living on the road (food, hook-up fees, and the costs of those activities you want to do at various destinations). For many people, living on the road in an RV is less expensive than living in that big house you needed when the kids were at home.

More Than the Money

There is more to think about than just the dollars and cents. You might not get another chance to see the open road, without having to make hotel reservations and keep to an itinerary. Fulfilling your dreams and having independence have intrinsic value. RVs allow you to visit places that are gorgeous but have no hotels nearby. Life on the road allows you to meet lots of new people or get away from everyone. To a great extent, living on the road in an RV lets you do what you want, when you want, where you want and with whom you want. It is hard to put a price on that degree of freedom.

You should talk with an elder law attorney near you to make sure that all your estate planning documents are up-to-date before you start your adventure, and to find out if your state has different laws than the general law covered in this article.

References:

The Balance. “Why an RV Might Be the Perfect Retirement Lifestyle for You.” (accessed July 25, 2018) https://www.thebalance.com/retire-in-an-rv-2388787

The Hartford. “How to Retire on the Road in an RV.” (accessed July 25, 2018) https://extramile.thehartford.com/transitions/retiring-on-the-road-in-an-rv/

Kiplinger. “Could You Live in an RV?” (accessed July 25, 2018) https://www.kiplinger.com/article/retirement/T062-C000-S002-could-you-live-in-an-rv.html

Travel Tips for Seniors

“Good planning and preparation can make the difference between a dream vacation and a nightmare trip.”

You have worked hard for years, and now you finally have time to travel. Good planning and preparation can make the difference between a dream vacation and a nightmare trip. Thankfully, travel experts have done much of the work for you, so you can relax and enjoy yourself. Here are some of their travel tips for seniors.

Travel Insurance

The pros agree – travel insurance is essential for people of advanced age. Yes, the insurance adds to the cost of your trip, but having to pay for a specialized evacuation flight home for medical reasons will cost much more than the insurance coverage. Just make sure the policy pays for medical care abroad and evacuations, and does not exclude pre-existing conditions.

Medications

While we are on the subject of medicine, make sure that you carry more than enough of your prescription and over-the-counter medications. Do not put meds in your checked bags, since they can be lost or delayed. Take a few extra days of all the meds that you expect to need. Ask your doctor how to handle doses, if you will cross several time zones.

Carry your medications in their original containers, so you can prove they were prescribed to you. Original containers can also help if you need a refill while overseas. Write down the generic name of all your meds in your language and in the language of the place you will be visiting.

Check to see if the prescription drugs, over-the-counter substances and herbal supplements you want to take are allowed where you are traveling, including going through airport security. Federal law  supersedes state law on this issue.  Therefore, if you have medical or recreational marijuana, for example, and it is legal in your State, it could be illegal drug possession elsewhere. Many countries impose long prison terms for a small amount of contraband.

Packing Light

Lugging a large, heavy suitcase through trains and buses and around airports and hotels can be the worst part of the trip for travelers of any age. You have two options – pack light or ship your luggage. You can even combine the two strategies. Packing light is easy, as long as you plan time into your travel schedule for doing laundry. You can pack just enough clothes for a few days, instead of a dozen outfits.

Luggage valet services can pick up your suitcase from your home right before your trip and ship it to your hotel, then ship it back to your home from the hotel at the end of your stay. Baggage fees with many airlines make this option less of an extravagance than it used to be. Once you experience the joy of traveling with only a small backpack or messenger bag, you might want to include luggage valet service in your future travel budgets.

Leave it at Home

Take a cold, hard look at the things you are thinking of taking on your trip. If you would not feel comfortable carrying them in a sketchy neighborhood, leave them at home. You do not want to get hit over the head, while away from home because your flashy watch, jewelry, or expensive camera caught the attention of a thief. Seniors are already the target of crooks when traveling. Advertising things they will want to steal, increases your odds of being the victim of crime.

We want you to be safe and comfortable, so you can enjoy your vacation. Be sure to talk with an elder law attorney to make sure that all your estate planning documents are current before your trip, and to find out if your State has different laws than the general law covered in this article.

References:

Smarter Travel. “7 Safety Tips for Senior Travelers.” (accessed July 25, 2018) https://www.smartertravel.com/2017/06/19/7-safety-tips-senior-travelers/

Rick Steves. “Savvy Senior Travelers.” (accessed July 25, 2018) https://www.ricksteves.com/travel-tips/trip-planning/savvy-senior-travelers

Seniors Need to Know About Social Media

With all the fun and convenience, there are also people who make a living from stealing the identities of others and running online scams.

The internet has changed daily life for everyone, including seniors. You can buy your groceries online and have them delivered to your front door, find a reliable handyman, look up a recipe and see photos of your grandkids who live in another State. With all the fun and convenience, however, there are people who make a living from stealing the identities of others and running online scams. Here are some tips about what seniors need to know about social media.

Control Who Sees Your Stuff

Privacy settings are there to protect you. Posting something online, is like putting it up on billboards all over the world. You would probably be outraged to find some total stranger looking at your photo albums at home, but that is exactly what happens when you post photos online. At a minimum, restrict the privacy setting for each photo to people you know (friends).

Be aware, though, that if one of your friends shares your photo with her friends, who share it with their friends, and so on, you have lost all control over who can see your photo. Once something is posted online, it is permanent, regardless of whether you delete it from your page.

Do Not Advertise for Burglars

No matter how excited you are about your upcoming vacation, if you post anything about it online before or while you are away, you have given burglars a golden “break into my house” ticket. Other information on your social media account will tell them the area where you live, and a quick Google search can give them your address. Wait until you get home to post those vacation photos or comments about the trip.

Do Not Be an Open Book

Imagine that you want to learn about a family’s habits, so you will know when the house is empty for you to break into it. Many people use social media like a daily diary. They post when they are at the kids’ soccer games, when they go to a restaurant, what activities they do with their church and many other events. A crook can easily piece together how you spend your week and know your habits.

Even worse, a predator could come up to your grandchild and offer him/her a ride home from school, saying that he is your friend. He could give your grandson enough information about your life to convince him/her that he is a friend of yours.  This is all because of information you posted on Facebook or other social media.

Put a Stop to Hoaxes

Internet hoaxes hurt everyone. Some common hoaxes are that a celebrity died, or that someone is hacking Facebook accounts by sending friend requests. Innocent people are falsely accused in many of these hoaxes. While you might genuinely want to help your friends by warning them about what you think is a dangerous person, spreading false information helps no one.

Take ten seconds and do a Google search about the suspected hoax to verify if it is legitimate, before sharing the message. Many hoaxes are clickbait or contain links that are scams or put viruses on your computer. If you share those, you are hurting your friends.

By following these tips, seniors can be safer when using social media.

References:

Newsmax. “7 Social Media Tips for Seniors.” (accessed July 25, 2018) https://www.newsmax.com/fastfeatures/social-media-tips-seniors-aarp/2017/01/12/id/768175/

Senior Care Corner. “Seniors Connecting on Social Media – Tips to Stay Safe.” (accessed July 25, 2018) http://seniorcarecorner.com/seniors-connecting-on-social-media-tips-to-stay-safe

How You Can Use the Secret of Warren Buffett’s Continued Success?

“We are not saying that you will become the next Warren Buffett, but applying his habit of constant learning can make you more successful than you thought possible, regardless of your age.”

Just because you are getting up in years, that is no reason to believe you cannot be financially successful. Warren Buffett is pushing 88 years old and he is still making a fortune. He has the finger on the pulse of the financial world. He buys and sells stocks with better results than most people half his age. Whether you want to be wildly successful with your investments, your business, or something else, here is how you can use the secret of Warren Buffett’s continued success at age 88.

Educate Yourself

When he started investing at age 11, Warren Buffett learned everything he could about investing and the companies whose stock he was buying. Not content to rely on the advice of others, he made himself an expert. While it can be tempting to hire a broker and let them do the market research for you, that course of action limits your success to the level of competence of another person. No one is likely to work harder for your benefit than you will.

Never Stop Learning

Not everyone is a fan of school. In fact, many people cannot wait for the day when they finish high school or college. Sadly, most Americans read very few books after they finish school. Highly successful people, on the other hand, tend to be avid readers.

Let’s say you have decided to start your own consulting business as a way to stay busy and bring in a few bucks during retirement. What could be easier, you think, than to get paid for what you already know? Well, if you want to be successful in your consulting business, you need to start learning new things and never stop.

Things you will want to research before starting a business in retirement:

• The competition. Before you sink a bunch of money into your venture, find out whether your town is already saturated with consultants in your field. Before you spend one dollar, you should find out how much the competition charges and the services they provide.
• That special something. Once you know your competition, you need to figure out something you can do to set your business apart from all the competition. Giving people something no one else does will bring people to your door. For example, if you write a booklet that you give to clients, you will look more polished than others. Just make sure it is packed with useful information your clients need, and is not a self-serving advertisement about your services.
• Stay on the cutting edge. The only way to anticipate trends before they start, as Warren Buffett does, is to constantly learn about your market, product, services and technology. Go to conferences. Attend lectures from experts about developments in your field. Learn the things you did not have the time to study, when you were working 9 to 5 for someone else.

We are not saying you will become the next Warren Buffett, but applying his habit of constantly learning can make you more successful than you thought possible, regardless of your age.

References:

TheStreet. “Warren Buffett at Age 87 Still Does One Amazing Thing That Drives Success.” (accessed July 25, 2018) https://www.thestreet.com/investing/stocks/warren-buffett-shows-this-rare-ability-that-makes-him-successful-14613691

Unique Issues LGBT Seniors Face

 “Some of the hostility toward LGBT elders will remain until our society progresses to the point of treating everyone with dignity and respect.  Until then, LGBT seniors can take legal steps to prevent or minimize some of the unfairness.”

All older adults confront new challenges as they age, but the LGBT community faces hurdles that can make retirement years more of a struggle than for other groups.  The executive director of SAGE (Services & Advocacy for Gay, Lesbian, Bisexual and Transgender Elders) urges Americans to take action on five of the unique issues LGBT seniors face.

1. Financial insecurity. Your average aging American has greater financial resources than aging LGBT people. By way of example, the poverty rate of elder heterosexual couples is 4.6 percent, while the poverty rate for elder lesbian couples is 9.1 percent. Greater financial struggles during retirement should not come as a surprise since members of the LGBT community endure employment discrimination throughout their careers, resulting in lower income potential. Same-sex couples also experience the denial of benefits from Social Security, Medicaid, pensions, and retirement plans.
2. Access to aging services. After a lifetime of harassment and attacks, many LGBT seniors do not avail themselves of services for the aging because they fear more persecution. Staff members and other elderly people can be openly hostile to members of the LGBT community. Insensitivity and discrimination need to be addressed by aging services. They also need to reach out to the LGBT community and plan for their needs, instead of continuing to exercise tunnel vision about our aging population. With appropriate training, these agencies can meet the needs of aging LGBT people and treat them with the respect and dignity they deserve.
3. Social isolation. Elderly LGBT people experience depression, poor nutrition, premature death, and delays in seeking care because of the social isolation they face. Sadly, senior centers and volunteer agencies are guilty of making elderly LGBT people feel unwanted and judged. The childless rate of the LGBT community is three to four times as high as the general population, and older LGBT people are twice as likely to be single and live by themselves.
4. Basic health care. Family members provide about 80 percent of the long-term care for the elderly in America, but LGBT seniors are twice as likely as the general population to have no close family to help them. Older LGBT people tend to delay seeking medical treatment out of fear of hostility and discrimination. Unfortunately, the staff members of many health care providers are, indeed, either openly hostile toward or, at a minimum, uncomfortable with providing medical care for members of the LGBT community. As a result, many older LGBT people avoid getting medical care from doctors, nurses, pharmacists, and nursing home staff.
5. Caregiving. When the support system of an LGBT elder, usually her partner or family of choice, is not legally recognized, the partner or chosen family member cannot have a say in the aging LGBT person’s medical care. If they have not created the documents that grant legal authority to each other, LGBT people can be denied the right to make decisions about medical care, hospice, and funeral arrangements. Some families who disapprove of their LGBT relative’s lifestyle will even bar the elder’s partner from visiting in the hospital.

LGBT seniors can take legal steps to prevent or minimize some of the unfairness.

Talk with an elder law attorney in your area to find out about documents that can protect your legal rights.

References:

AARP. “LGBT Advocate Sees Hurdles Ahead.” (accessed July 19, 2018) https://www.aarp.org/relationships/family/info-04-2011/biggest-issues-facing-older-lgbt-americans.html

Risks Associated With Aging Alone

The financial side is only the tip of the iceberg if a single person wants to live comfortably and enjoy retirement.

If you do not have your retirement planning written in stone yet, you are not alone.  Many people are too busy with their day-to-day lives to set aside much time to think about the issues they will face as they get older. Then one day, you find retirement around the corner, and the decisions you need to make can be overwhelming. Aging adults who live alone have even more issues to confront.  Here are some things you need to know about aging-alone plans for baby boomers.

Before Congress created Social Security, 401Ks, Roth IRAs, and other financial options, the typical retirement plan used to be that your kids would take care of you when you got older. That scenario does not work well now because baby boomers had fewer children than their parents, and many people facing their next chapter do not have any children. Those who do not currently have a spouse and do not have children nearby are often called “elder orphans.”

Although there are more options now for building financial security for your golden years rather than being dependent on someone else and hoping for the best, the financial side is only the tip of the iceberg if you want to live comfortably and enjoy retirement without a spouse or children. Here are some of the issues you might want to think about:

• Does it make sense for you to try to stay in your home as you get older? There are many in-home services that are now available. You do not need to move into a retirement home just because you might not feel up to cooking all your meals or pushing the vacuum around the house. Making some common-sense renovations to your house can save you a fortune on long-term care costs. Some changes cost nothing, such as decluttering and removing rugs and other tripping hazards.
• Consider your house as an asset. Having someone live-in and exchange room and board for housekeeping chores can give you better care and more attention than you are likely to receive in a nursing home.
• You do not want to outlive your money. Meet with a financial planner or elder law attorney to decide how to maximize your income and cash flow in retirement. You will want to discuss the right age for you to retire, when you should start collecting Social Security retirement benefits, your monthly and annual budget, your investments and savings and how to keep your health care costs down.
• Consider when and how to apply for Medicare and which Medicare plan is best for you. The wrong plan could spell financial ruin.
• Minimize your need for medical treatments and prescription drugs, by staying physically fit and mentally sharp. After decades of answering to alarm clocks, many people relish the idea of sleeping in and doing as little as possible once they stop working. Getting plenty of sleep is important for your health, but you need to stay physically and socially active if you do not want to spend your hard-earned next chapter suffering from poor health and cognitive decline. In retirement, you can stay active doing things you enjoy.

Create your best life for your retirement years with an aging-alone plan. Be sure to consult with an elder law attorney near you when developing your plan.

References:

HuffPost. “Elder Orphans: A Baby Boomer’s Aging-Alone Plan.” (accessed July 19, 2018) https://www.huffingtonpost.com/carol-marak/aging-alone-plan_b_8886418.html

What Happens When an Elderly Person Becomes Incapacitated?

 “An elder law attorney can help you protect yourself and your loved ones from having to settle for a court-appointed guardian.”

When an older adult loses the ability to take care of himself, make or communicate decisions, or handle their financial matters, someone needs to step in and help him, so that they do not suffer neglect or abuse.  What happens when an elderly person becomes incapacitated will depend on whether he has family to help, or has made the legal arrangements for someone to manage his care.  When a senior does not have any family members nearby who are able or willing to help, sometimes the courts have to get involved.

The Problem with Court-Appointed Guardians

Many court-appointed guardians are dedicated professionals who carry out their duties honorably, but some perpetrate what advocates for the elderly call “elder abuse” of epidemic proportions. Depending on the actual wording of the court order, a guardian can have relatively unfettered control over the life savings and home of the senior. If the elderly person raises suspicions of mismanagement of her funds, people usually disregard the concerns because of her diminished cognitive abilities.

There is little oversight of guardians. Even if they file accountings with the court, those documents are rarely verified for accuracy or truthfulness. The so-called accounting could be a work of fiction. A guardian can sell a person’s home, tap into the bank account and no one will ever know. When the senior who has no close family dies, an unscrupulous guardian can keep assets illegally appropriated, and no one will question the actions taken.

In addition to better oversight, elder-care experts advocate for stricter requirements for people seeking to serve as guardians.  There is no comprehensive database that maintains information about guardians, so tracking the “bad apples” is not possible.

Guardians are supposed to manage a person’s care, finances and even medical care, depending on the terms of the court order. Some states have reported guardian-to-ward ratios of 1-to-40. In one abuse case, a guardian had about 400 wards. Imagine the public outrage if one person was trying to raise 40 children, much less 400 – yet there is little societal concern about our vulnerable elderly, who are depending on the very people who end up taking their money.

How to Protect Yourself and Your Loved Ones from Unscrupulous Guardians

Make the necessary legal arrangements now, before you (or a loved one) become incapacitated, so you will not be left with a court-appointed guardian, who is a total stranger. Prepare a durable power of attorney to appoint someone to act as your representative and make decisions about your care and financial matters if you are ever unable to do so. While you are at it, execute a medical power of attorney and appoint someone to make medical decisions for you if you cannot do so.

Give your doctor and bank these documents so they can raise any objections while you are able to make changes. Some financial institutions want you to use their forms. Regardless what your state law says, some banks will object to a power of attorney that is more than a few years old, so redo the documents every few years to cover yourself.

An experienced elder law attorney can help you protect yourself and your loved ones from having to settle for a court-appointed total stranger as guardian.  Your state laws might be different from the general law in this article, so be sure to talk with an elder law attorney in your area.

References:

Huffpost. “The System of Court-Appointed Guardians Continues to Fail the Elderly.” (accessed July 19, 2018) https://www.huffingtonpost.com/entry/court-appointed-guardian-system-failing-elderly_us_59d3f70be4b06226e3f44d4e

The Ugly Reality of Prejudice Against the Elderly

“Prejudice against aging Americans can take two forms – abuse or discrimination.”

Although elders are respected and revered in some other cultures, they do not enjoy this favored treatment in America. In fact, many people think it is acceptable to treat people differently because of their age in ways that would spark a backlash of anger, if the discrimination were related to race, gender, religion or sexual identity. There is an attitude that, once a person has worked most of his expected years, he is on the decline and of less value. That sentiment is woven into the fabric of the ugly reality of prejudice against the elderly.

Prejudice against aging Americans can take two forms – abuse or discrimination. Each type has several sub-categories.

Elder Abuse

Abuse of seniors can be physical, financial, psychological, or sexual. Because the vast majority of aging adults suffer their mistreatment at the hands of family members or trusted close friends, on whom the older person is partially or wholly dependent, the victim is highly unlikely to report the behavior. Much of the attention given to the mistreatment of elders focuses on abuse.

Elder Discrimination

Ageism is a word we seldom hear, unlike other “isms,” such as racism or sexism. Just as other forms of discrimination are reflections of thinking that certain groups of people are inferior, ageism indicates a lack of respect for people because they have had the good fortune to live a long life.

Seniors in America endure commercial abuse on a regular basis. It can be more difficult for a person who is 55 or older to get a job. The rate of unemployed or underemployed people who are 55+ is over is 12 percent, which is more than double the overall national rate. One of the common excuses people give for not hiring an older person is the expectation that she will miss work frequently for sick days. The reality, however, is the opposite. Statistics show that people age 55 and older are more reliable than younger people.

Older people across the nation find it hard to get a mortgage, rent an apartment or buy a new car. Lenders hesitate to finance large purchases for older people, assuming they will not live long enough to pay off the loans.

Many seniors suffer unnecessarily with treatable medical conditions, either because they do not seek medical care, thinking that “aches and pains” are a normal part of aging. Their medical professionals may also have a casual response to the medical complaints of seniors and do not bother to perform adequate examinations or diagnostic procedures.

Poking fun at a person and using unflattering nicknames based on a person’s advanced age is still tolerated in our society. Similar behavior would be reported, if directed at someone based on other protected classes, such as race, religion, disability, or gender. Marginalizing people hurts all of society, not only the victim of discrimination. With any luck, you will be 65 or older one day. Work now to create the kind of reality you will want to experience when you get there.

How You Can Get Help for Elder Discrimination or Abuse

In cases of abuse, contact law enforcement right away. For age discrimination, talk with a local elder law attorney about remedies available in your state.

References:

HuffPost. “Elder Discrimination & Abuse.” (accessed July 19, 2018) https://www.huffingtonpost.com/entry/elder-discrimination-abuse_us_598a0575e4b08a4c247f2629

The Epidemic of Elder Financial Fraud

We have all heard the shocking accounts of seniors being the victims of physical abuse in their own homes and in retirement facilities.  However, the problem of financial fraud perpetrated on the elderly does not get as much attention. Combine these two facts:

• Family members or trusted caregivers commit 90 percent of the financial abuse on seniors, and
• Defrauded older adults only report 1 in 44 cases of fraud,

and you see why ripping off aging Americans is the perfect storm. It is easy to rip off vulnerable older adults, when they are too afraid or embarrassed to report their abuser. When the victim is suffering from cognitive decline, you might as well paint a target on her back. Here are some things you need to know about the epidemic of elder financial fraud.

Common Tactics Used to Defraud Seniors

Sometimes elder financial abuse is part of an organized scheme, like these examples:

• A stranger knocks on the senior’s door and offers to trim trees, seal-coat the driveway, deliver firewood or some other service. He demands cash up-front, then never returns to do the work, or he does a partial or sub-standard job.
• A home improvement company pressures the older adult into signing contracts for expensive home renovations, often in league with a shady financing company. The senior cannot afford the monthly payments, and risks losing his home.
• Someone telephones the elderly person claiming her grandchild has a medical emergency or legal trouble in another country, and needs the grandmother to wire money.

Other types of financial abuse are unscrupulous individuals, usually family members or close trusted friends or caregivers. These rip-off artists treat older adults like a piggy bank. They steal cash or other valuables from seniors, run up debt on their credit cards, or “help” them by running errands like grocery shopping, but also buy things for themselves using the older person’s money.

How to Help a Victim of Elder Financial Abuse

If you suspect that a senior has been the victim of financial abuse, contact law enforcement right away. When caught early enough, the police sometimes can get financial institutions to reverse transactions and return the money to the senior.

How a Lawyer Can Help

Whether there is a criminal prosecution or not, an elder law attorney might be able to file a lawsuit against the con artist to get the elderly victim’s money back. Judges and juries are sympathetic in these situations, but the cases can be challenging, due to a lack of laws that adequately protect our aging population.

A lawyer can also help you take legal steps to protect the senior from future financial harm. A durable power of attorney for financial matters can give you the authority to keep her money out of the hands of those who would take advantage of her. Setting controls on her financial accounts, such as requiring two signatures on all checks over $100, can also protect her. Having her monthly income direct-deposited into her bank account can prevent people from stealing her checks out of the mailbox. A lawyer can look at your loved one’s specific circumstances and help you to develop a plan to keep her safe.

You should talk with an elder law attorney in your area to assist with your older loved-ones.

References:

HuffPost. “Elder Fraud and Abuse: A Silent Epidemic.” (accessed July 19, 2018) https://www.huffingtonpost.com/entry/elder-fraud-and-abuse-a-silent-epidemic_us_5823338de4b0102262411f47