Nursing Home Contracts: READ BEFORE YOU SIGN!

When a person enters a nursing home or assisted living facility, typically the arrangements are made by a loved one. That individual should be acting on behalf of the parent or spouse. Thus, financial obligations should be the obligation of that person and not the person helping him or her. The nursing home would love to have another individual “on the hook” for care obligations. You are not required to assume that liability. Be sure that you don’t assume a financial responsibility that you didn’t intend to undertake. Read carefully. Best of all, have a lawyer review the document before you sign it.

Do You Have Backups for your Powers of Attorney or your Will?

Many people think that they only need to name one person as their personal representative (executor) or power of attorney-holder. Because, they say, if something happens to that person, they’ll have time to appoint a replacement. Alas, human nature being what it is, they may delay acting until it is too late.

By naming a back-up when the legal papers are first prepared, you’re much less likely to have a power of attorney that can’t be used because the person named is no longer “available”.

Beware of Joint Bank Accounts Among Family Members

Joint bank accounts with parents and children listed are a convenient way to avoid probate and simplify inheritance after the “last” parent dies.

Unfortunately, there are potentially very serious risks if a child abuses his right to withdraw joint funds originally owned by the parents. Anyone listed on a joint account can withdraw the entire account balance.

There are also risks for the child who withdraws such funds even if the intention is to benefit the parent.

Under Maryland law, as interpreted by the Court of Appeals, the child is vulnerable to criminal charges of theft lodged by a disgruntled parent. The Court ruled this year that being on a joint account no longer makes one a “co-owner” automatically. If, for instance, the parent adds the child to his account for “convenience” (“to help dad with banking needs”), the child becomes a fiduciary to that parent with special responsibilities and both criminal and civil liability risk if alleged to have acted improperly concerning that parent’s “funds”.

The moral: The “easy way” to share control of assets and do “estate planning” on the cheap may not be the best way for all concerned.

Please let me know if you want to review your bank accounts and estate planning situation with me.

Read To Live Longer?

An Australian study found that regular members of book clubs lived longer than those who joined but dropped out. The results seem odd since belonging to a book club isn’t likely to impact health benefits not available to non-members. More probable is that being in a regular group setting provides the socializing, as humans, we all need, with the added bonus of reading providing mental stimulation. Loneliness contributes to depression which certainly shortens life.

Feeling in Control -- A Key to Longevity

Studies make clear that people possessing a sense of independence (“being in control”) outlive those who don’t.

How can that be fostered? Families of loved ones and their caretakers need to focus on presenting choices, not decisions.

Of course, some dependence is unavoidable (isn’t that so for all of us?). But, the need to deprive the person of a say in some matters (driving a car, for instance) shouldn’t disqualify him from making any decisions. The reality, however, is that it’s easier to make all choices for that person.

Resist the temptation.

At the very least, let the person pick out what to wear each morning and make other simple choices.

Others recognizing the areas of independence that can be safely honored enhance the “cared-for” person’s sense of self- worth and extends his life. (Who wants to be entirely dependent on the decisions of others for his existence?) 

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.