Computer Use Holds Dementia at Bay!

Studies show that the risk of suffering from mild-cognitive disorder (MCI) – often, although not always, a precursor to dementia – decreases substantially for those who are mentally-stimulated. Desirable activities include weekly computer use, playing cards and reading.

Beware of Scammers!

A recent Wall Street Journal article warned that authorities are fighting a scourge of phone crime enabled by cheap technology that blasts out nefarious calls and hides wrongdoers’ whereabouts. The scammers are heavily targeting the elderly, often posing as cash-strapped grandchildren, tax collectors or providers of technical support.

Fully robotic robocall schemes leave automated messages directing recipients to call back certain numbers. Those who comply encounter a person and a pitch. In another tactic, fraudsters, often overseas, hop on the line when someone picks up. India, The Philippines, Costa Rica and Peru are among countries where such operations are most prevalent.

Also, fraudsters use robocalls and caller IDs to imitate the Internal Revenue Service.

The callers falsely and aggressively claim recipients owe back taxes and face immediate legal trouble. 

Note: The IRS will send you a letter first – not a phone call – if you owe back taxes. The IRS scam is among those disproportionately targeting the elderly.

When A Loved One Dies…

Scam artists and ID thieves are often on the alert.

Head them off by notifying credit bureaus (TransUnion, Experian & Equifax), the banks and financial institutions the person did business with, and don’t forget to notify Social Security, too.

Does Testosterone Halt – Or Roll Back – Male Aging?

Sorry, too good to be true for most men.

Studies have shown benefits in sexual performance for some older males, but not for most. And testosterone did not help with stamina or energy levels, contrary to the ads promoting the supplement.

If you are tempted nonetheless, be forewarned. There are credible reports that users are at greater risk of heart attacks and strokes.

Transferring Partial Ownership Interest to Your Children While Retaining Your Right to Live There

Last week, I discussed the dangers of transferring one’s house to children outright. However, it is possible for you to transfer partial ownership interest to your children which will result in their being the complete owners of your property after you die or give up your right to live there.

It is called a life estate. In this form of real estate ownership, you can transfer full ownership of the house to your children (or anyone else for that matter) at the event of your death while retaining the right to live in your home for the balance of your life (“life estate”).

Think of it as lifetime tenancy. In the normal rental transaction, a tenant has the right to occupy property for a specified period of time either in months or years. A life estate tenancy is for the duration of one’s life. Although your children may be designated as the full owners of the property upon your passing, they have no rights to the property while you are alive.

Transferring your real estate to your children while retaining a life estate is the best way to transfer real estate to your children while protecting your right to remain in the home.

Another option that is popular is to add a child to your deed as a co-owner and include language in the deed designating that the survivor will inherit the entire property. There is a danger to doing that that most people do not appreciate. If you transfer any portion of your immediate ownership rights in the real estate, you are transferring the right to sell that interest. As a practical matter, if you and a child for instance, have a falling out, that child can put his 50% interest on the market. That means that there would be a likely co-owner who is a stranger. The more likely scenario is that the entire home would be put on the market and sold so that the child could take his share from the proceeds. That would leave you without a home.

Is It a Good Idea to Transfer Ownership of Your Home to Your Children?

Usually not. You may want to do so because you wish to avoid probate and have your children be secure in the knowledge that the home is theirs. Further, they may have promised to let you live there as long as you want or can.

WARNING! If you give up all ownership in your home, you no longer have a right to live there.

Your children may display selfishness and greed that you would have considered unthinkable, but we know it happens all the time. What are you going to do if the house is sold out from under you?

And what if the owners experience serious debt problems and the creditors go against the home (remember, you no longer own it)? Where will you live after you’re forced out?

Please don’t misunderstand. Most children would not abuse a parent’s trust, but are you willing to bet your home on the belief that such trust will not be violated? The temptation of money can cause even loved one to do things “out of character”. There are better options which may allow you to “have your cake and eat it, too”. I will discuss those in next week’s blog.

How Will I Pay for a Nursing Home?

Medicaid (government welfare) was long-used as the preferred way by many of preserving family assets while also receiving necessary care. This was accomplished by what is known as Medicaid planning. Because of recent changes in federal law designed to tighten eligibility requirements, the advantages of such planning have been greatly reduced. As a consequence, long term health care insurance has become a much more desirable option for serving the same the purpose.