Documentary on Financial Elder Abuse Starring Mickey Rooney

A new documentary entitled Last Will and Embezzlement that is slated for release tackles senior financial exploitation.  The film will touch on all aspects of the problem with the ultimate goal of raising awareness of the problem to ultimately lower the incidence of mistreatment.

The centerpiece of the film is an extended interview with perhaps the most well-known advocate against elder financial abuse: Mickey Rooney.  The 91-year old film star testified before Congress last year while detailing abuse that he suffered at the hands of a family member.  His purpose in appearing in the film is to dispel the myth that this sort of exploitation occurs only to those who live alone or have few close friends and family members.  In fact the documentary tagline is: "If it can happen to Mickey Rooney, it can happen to anybody."

The filmmaker was motivated to take on the project after watching her father fall victim to abuse. She explains how her father was in a nursing home, when mysteriously, a stranger entered the facility and claimed to be his son. The senior had just lost his wife and was suffering from severe Alzheimer's at the time. The filmmaker states that her father "would have signed the Magna Carta" if it was placed in front of him at that point in his life.

The scammer used his lie about being a relative to acquire sensitive financial information and exploit the ailing senior. The man also acquired a Power of Attorney over the senior, making it incredibly difficult for the family to unravel the problem down the road. It ultimately took two years before the woman finally learned of the depth of the exploitation.  Her advice: "Set it up so you don't become a victim...know the laws against elder abuse."

Since the Supreme Court upheld the Affordable Car Act, The Elder Justice Act contained in it can be implemented.  It aims to combat financial, physical, and mental crimes and abuse committed against the elderly.  Some help may also be coming in the form of federal legislation. New York Senator Chuck Schumer, for example, is fighting for stepped up federal laws requiring more mandatory reporting of suspicions of elder mistreatment. While these new rules may help, by no means do they offer clear avenues to eliminate all mistreatment.

Planning and oversight by the family are crucial preventative steps. Obviously having elder law attorneys and other advocates in the mix is one way to ensure abusers aren't able to obtain legal documents and wreak havoc on the life of a vulnerable senior who may not fully understand the situation.  Overall, it's best to have comprehensive oversight and proper preparation before disability or cognitive vulnerability sets in.

Losing the Family Home Over a $400 Tax Bill

Senior care advocates repeatedly remind families that oversight is needed in some cases to ensure seniors do not fall victim to financial exploitation. Beyond protecting against scammers and hucksters, many seniors are facing a new financial crisis that is not rooted in illegal misconduct. When on a fixed income and struggling with confusing money issues, some seniors might face incredibly severe financial penalties for falling behind on certain bills or taxes.  CNN Money reported this week on a growing number of individuals who are losing their homes because they owe relatively small sums.  A report from the National Consumer Law Center (NCLC) detailed how some states have outdated laws that allow states to sell tax liens on delinquent properties.  This means that instead of the government having a lien on a piece of property that owed back taxes or bills for services like water and gas, private investors own the lien.  The investor then collects interests on the overdue bill or, in some cases, forecloses on the home.  Some states allow investors to charge staggeringly high interest rates, from 15% to 50%.

Seniors are particularly vulnerable to falling behind in this way, either because of challenges of being on a fixed income or confusion with the bill paying process.  The NCLC report details one case of an 81-year old woman who lost the home she lived in for 40 years because she owed $474 on a sewer bill.  The NCLC report noted that seniors with cognitive diseases, like dementia and Alzheimer's are prone to fall victim to this situation.  It is very confusing to follow the changing financial arrangements.  The seniors are usually notified of the situation in legalese that many do not understand.  As a result, they do nothing, rack up interest debt, eventually default, and often lose their home.  The report elaborated that seniors without family members or who have not visited with elder law attorneys and other professionals were more likely to be hurt by this situation.  In one case, an elderly woman who lived alone without family fell back $5,000 on taxes.  Eventually, she lost her home and lost about $150,000 in equity that she had accumulated.

Advocates are working to change laws so that interest rates are lowered and adequate warnings are provided to homeowners.  It remains unclear if those efforts will be successful, and so putting preventative measures in place now is prudent for local seniors to avoid this situation.

Planning for Couples with an Age Gap

Each estate plan is slightly different, but there are some challenges in estate planning that present themselves to different couples.  One common challenge is planning for married couples who have a significant age difference.

Perhaps the most obvious issue involves overall financial planning.  With age differences, one spouse is likely to outlive the other, perhaps by a considerable length of time.  The younger spouse may therefore feel more comfortable taking certain risks than the older spouse who is more likely to suffer from short-term financial dips.  It is important to balance the interests of both partners.  Couples of different ages require unique planning so that time horizons are meshed.  Retirement planning can be tricky if one spouse plans on working longer.  Similarly, long-term health care planning will be implicated by the age differential.  One spouse may need care earlier, though it is usually not prudent to automatically assume that the younger spouse will be able to provide the needed care.

A recent Morning Star article touched on many of these topics and mentioned a few other issues to consider for couples in this situation.  One point made in the story is that these couples often need to prioritize long-term care and life insurance.  Planning for disability is particularly crucial to couples, because family finances must account for both partners.  If one spouse is injured or faces a medical complication and is disabled, then family finances may be decimated if expensive, long-term care is needed.  In the worst-case scenario, assets are exhausted to care for one spouse while the second spouse remains healthy.  In order for the sick spouse to receive Medicaid support, assets for the entire couple must be below a certain level.  The healthier spouse can be left with little to no assets.  In these situations it is critical to get professional advice, as certain strategies can be employed in order to save as many assets for the second spouse as possible while still allowing the ill spouse to qualify for Medicaid.  This is particularly true for spouses with large age differences, because the younger spouse often needs assets to last for many years to come.

Home Care Workers: the Minimum Wage Controversy

Seniors typically obtain peace of mind knowing that they will be able to receive late-in-life care in an ideal setting and that the care will be of top quality.  These simple goals should not be out of reach for any older community member.  However, many seniors will be forced to deal with less than adequate care, often in institutional settings where they would rather not live.

Part of the problem is that many will not have planned for late-in-life care.  Staying in one's home while aging usually requires advance planning and ensuring that a home care worker is actually providing an appropriate level of care. Recently there has been a shortage of quality home care workers.  One of the biggest problems is that for a period these workers were exempt from minimum wage laws.  When Congress passed minimum rights legislation, all home care workers were lumped into the category of exempt employees who acted as "companions."  This was the case even for workers who engaged in a wide range of physical labor helping seniors bathe, dress, use the facilities, walk, get exercise, and eat properly.  Of course, it seems intuitively unfair for these workers to be forced to live in dire poverty at incredibly low wages and no overtime pay.

Fortunately, the legal error was recently corrected.  One reason the law took so long to change was that many of the individuals who fill these roles, often including women and those who are not native English speakers, have few advocates.  Also, as a result of the prolonged period of abysmal pay, advocates are worried that there is a shortage of well-trained, capable home health care workers.  The need for these workers is expected to skyrocket in the coming decades.

The shortage of quality caregivers makes it important for local residents to conduct proper research when deciding on an appropriate home care provider for their loved one.  Therefore, most advocates recommend going through a qualified agency to find these assistants.  Most agencies are required to perform multi-state background checks, screen for drug use, and require references. The risk of abuse or theft is always much higher when home care workers are unsupervised and unaccountable.  Home care is of little value if that home care worker is inadequate. 

Ten Warning Signs for Alzheimer's

November is National Alzheimer's Disease Awareness Month and Family Caregiver Month.  Please take time to thank those who devote their time to helping individuals who struggle with this disease. This is also a good opportunity to be reminded about the 10 warning signs of Alzheimer's disease as outlined by the Alzheimer's Association. 

1.  Memory loss that disrupts daily life.  One of the most common signs of Alzheimer's is memory loss, especially forgetting recently learned information.  Others include forgetting important dates or events; asking for the same information over and over, relying on memory aids (such as reminder notes or electronic devices), or needing family members for things they used to handle on their own. This does not mean that if you forget names or appointments, but remember them later you necessarily have Alzheimer's. 

2.  Challenges in planning or solving problems.  Some people may experience changes in their ability to develop and follow a plan or work with numbers.  They may have trouble following a familiar recipe, keeping track of bills, or concentrating.

   

3.  Difficulty completing familiar tasks at home, at work or at leisure.  People with Alzheimer's often find it hard to complete daily tasks.  Sometimes, people may have trouble driving to a familiar location, managing a budget, or remembering the rules of a favorite game. Occasionally needing help to use the setting on a microwave or to record a television show is typical, though.

4.  Confusion with time and place.  People with Alzheimer's can lose track of dates, seasons and the passage of time.  They may have trouble understanding something if it is not happening immediately.  Sometimes they may forget where they are or how they got there.

5.  Trouble understanding visual images and spatial relationships.  For some people, having vision problems is a sign of Alzheimer's.  They may have difficulty reading, judging distance, and determining color or contrast.  In terms of perception, they may pass a mirror and think someone else is in the room instead or realizing that they are the person in the mirror. Cataracts are not related to Alzheimer's and may also cause vision problems.

6.  New problems with words in speaking or writing.  People with Alzheimer's may have trouble following or joining a conversation.   They may stop in the middle of a conversation and have no idea how to continue or they may repeat themselves.  They may struggle with vocabulary, have consistent problems finding the right word or call things by the wrong name (such as calling something simple like a "watch" a "hand-clock").

7.  Misplacing things and losing the ability to retrace steps.  A person with Alzheimer's disease may put things in unusual places and be unable to go back over their steps to find them again.  Sometimes, they may accuse others of stealing.  

8.  Decreased or poor judgment.  People with Alzheimer's may experience changes in judgment or decision-making.  For example, they may use poor judgment when dealing with money, such as giving large amounts to telemarketers.  They may pay less attention to grooming or keeping themselves clean.

9.  Withdrawal from work or social activities.  A person with Alzheimer's may start to remove themselves from hobbies, social activities, work projects, or sports.  They may have trouble keeping up with a favorite sports team or remembering how to complete a favorite hobby.  They may also avoid being social because of the changes they have experienced and fear that people may see their symptoms.

10.  Changes in mood and personality.  The mood and personalities of people with Alzheimer's can change.  They can become confused, suspicious, depressed, fearful, or anxious.  They may be easily upset at home, at work, with friends or in places where they are out of their comfort zone.