By: Sarah Stewart Legal Group
The National Council on Aging reports that financial crimes against the elderly are “the crime of the 21st century.” Financial crimes are becoming more common because law enforcement has difficulty finding the perpetrators and prosecuting them. Criminals who financially abuse the elderly can be complete strangers or family members.
Some of the more popular scams in recent years include callers posing as the IRS, Medicare, and claiming a family member has been kidnapped when they haven’t. These scammers try to force an unsuspecting caller to wire them money immediately and can even spoof a number to make the call look legitimate.
These scammers target people who have worked hard their entire lives to be able to retire in peace, people like our friend Ann. Ann and her husband were married for 40 years when he died. They worked together to build a nice nest egg that allowed Ann to retire comfortably soon after his death.
Recently, Ann got a call. On the other end of the line was a man who said he was from the IRS. He claimed Ann owed the IRS $10,000 in back taxes. If she did not pay immediately, the IRS would send someone to her home to arrest her. Ann had never had problems with the IRS before and was, understandably, shaken.
She drove to her local bank branch while she was on the phone with the man, to try to wire the money to him as he requested. Luckily, an observant bank teller noticed that Ann seemed distressed. She was able to speak to Ann about the situation and assure her that the man on the phone was not with the IRS. Ann was able to keep her money that day. Many people are not that lucky.
As loved ones age, their ability to recognize these kinds of scams can diminish. If families are concerned that their elderly loved ones may fall victim to financial abuse and scams, they can help protect them by convincing them to put an estate plan in place.
Everyone has heard of Wills and Trusts and planning for your family after your death, but many of us may not be aware of the fact that estate planning does more. For elderly family members, estate plans allow trusted loved ones to be aware of the financial health of the aging person and help protect them.
Estate plans usually include documents that allow people to choose others to act for them when they are unable to act on their own. These documents can include specific provisions about managing bank accounts and other assets to ensure the aging person does not fall prey to predators.
After putting an estate plan into place, be sure to list all of the companies the person holds assets with- banks, retirement accounts, stocks, bonds, insurance accounts, etc. Also, make a list of trusted advisors- attorneys, accountants, financial planners, etc. These lists will make it easier for family to step in when an elderly loved one needs them to take over.
Talk to your elderly loved ones about their plans today. If they have a plan, one that may be older, review the plan and make sure they don’t need to make any changes.
Have these conversations now and get these plans complete before it’s too late!