Money Management & Old Age

As we age our sharpness for financial affairs dulls particularly if dementia is involved. Bills are paid late, if at all. Checks are written and not posted in the ledger. So overdrafts frequently occur. And we become more vulnerable to solicitations from suspect charities.

You can help a parent or other loved one I this predicament if you are willing to step in.

There are services available which will help seniors organize their financial affairs (sort of like “bookkeeper plus”). Costs are rather modest. You, of course, can directly help, too. You should have the person’s financial power of attorney.

I can help with all of these needs and concerns.

Reminder: Check Your Credit Report!

Please remember that it is essential for everyone to check their credit history on a regular basis to be sure that it’s accurate and does not contain false or fraudulent information. Security breaches are now a common occurrence.

FREE credit reports are available from each of the 3 major credit bureaus, Equifax, Experian and TransUnion. These three nationwide consumer reporting companies have a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.

Visit https://www.annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Be sure you are on the "official" www.annualcreditreport.com website. Go to http://www.consumer.ftc.gov/articles/0155-free-credit-reports for more information and important warnings about “imposter” websites to avoid.

The law allows you to order one free copy of your report from each of the nationwide consumer reporting companies every 12 months so, if you stagger your requests to the companies, you can monitor your credit by requesting a report every 4 months.

Over 80% of the general public does not request credit reports. Don’t allow yourself to fall victim to credit fraud because you failed to regularly check your credit history. It's easy and it's FREE!

Exercise Can Ward Off Falls

As we age, our sense of balance deteriorates, making us more prone to falling. And falls can be serious. We have all heard of older people who fall and break their hips. Such injuries can have devastating effects in the future for such individuals even after surgical intervention.

Interestingly, there is some evidence (although much of it is anecdotal) that exercising can improve one’s balance and increase reaction time. (Many falls occur because a person loses his balance but is unable to move his body quickly enough to recover and, hence, falls). Apparently, a system of exercises from the Orient known as Tai Chi can help. It is particularly useful for older people because it does not involve strenuous activity. There is certainly no requirement that you sign up to lift weights at the local gym!

Tai Chi classes are conducted, for instance, at many senior centers.  

Protecting Elders from Financial Exploitation

In a perfect world, people would not take advantage of vulnerable, elderly individuals. But, of course, that’s not the real world.

Accordingly, here are some tips on protecting those who need it.

·         Provide access to only one account. It is highly recommended that the vulnerable person have direct access to only one checking account. This limits exposure on checks written to charities or criminals.

·         On-line bill pay for monthly bills. Do automatic bill pay for routine bills. That helps with account surveillance.

·         Caution them about email scams. Educate about phishing scams. Advise against opening email or links from unknown senders. Set up regular and automatic computer anti-virus and malware scans.

·         Decrease opportunities for unwanted solicitations. To avoid telemarketing calls, add all phone numbers to the National Do Not Call Registry. Advise the vulnerable person to never give out credit card or Social Security numbers over the phone. To reduce mail solicitations, including “free” credit offers, unsubscribe at www.optoutprescreen.com. 

Do You Need a Living Trust?

You’ve undoubtedly heard the ads on the radio or seen newspaper articles recommending a living trust, instead of a will, as your major estate planning document. Is a living trust better than a Last Will and Testament? It depends.

Generally, the answer is no. Most people are under the impression that a living trust, also called revocable or inter vivos, will save your estate inheritance and death taxes. That is false. There is also a belief that a living trust will avoid the necessity of filing for probate. That is generally true, except that if the reason for someone wishing to avoid probate is to save money, that is probably a false savings, since probate fees in Maryland are approximately one-tenth of 1% of the total estate value. That means that the probate fee on an estate valued at $1,000,000 would be $1,000. The preparation of a living trust is likely to cost much more than that.

However, there are certain circumstances where a living trust is preferable to a will. If an individual owns real estate in more than one state, having a living trust makes the transfer of that real estate easier upon the owner’s death (because technically, the individual doesn’t own the property in various states, his trust does).

A living trust is a private document and, unlike a will, is not required to be filed with the probate court where it would become available for public inspection. Thus, if someone was interested in concealing the amount of his assets or the identity of his beneficiaries, a living trust would be the way to go.

Who Will Know If You’re In a Serious Auto Accident?

Maryland drivers can now add three emergency contacts to their driver’s license so police will know who to call if an accident occurs. The emergency contact information is stored electronically on an individual’s driver’s license and will be available only to authorized law enforcement and medical personnel.

You can go to the MVA’s website at www.mva.maryland.gov and add your three emergency contacts in just a few minutes! Go to the website, click “On-line Transactions”, then click “More”, look under “Other Services” and then click “Emergency Contacts” to add your contact names, addresses and phone numbers.

NOTE:  To perform this Emergency Contact transaction, you must be able to provide your driver’s license number, date of birth, and PIN or last 4 digits of your social security number.

Calming News for Alzheimer’s Patients

Anxious and sometimes violent, Alzheimer’s sufferers are the bane of loved ones and caregivers. At times, it seems as if nothing can be done to help them. But don’t lose hope.

A recent study showed that Nuedexta (a combination of quinidine and dextromethorphan) can help reduce anxiety and agitation. The drugs have been used separately for other treatments for years. Used together, they seem to work for Alzheimer’s patients.