Kansas & Missouri Estate Planning

Elder (Financial) Abuse Advice

Oftentimes an aging parent and siblings are a recipe for discord, especially when but a few of the siblings manage the elder's finances.

On the topic of disclosures, a reader inquired of the New Old Age blog regarding what to do about her family of eight siblings and one elderly father. Craig Reaves, past president of the National Academy of Elder Law Attorneys, practices elder law in Kansas City, Mo., fielded the inquiry and provided some sage advice.

According to the reader, long ago the siblings got together and put two of the sisters in charge of their father, largely because his will and other directives advised as much. As a result, they were granted power-of-attorney and access to his accounts.

Now, the reader has discovered that they aren't forthcoming with information about their father, his care, and his finances. The reader is worried that she won't hear anything until there's a demand for money to care for their elderly father, and, perhaps, that the original funds weren’t adequately used.

The response of Craig Reaves is tailored to the reader's unique situation, but his advice is applicable for many in this same or similar position. As a preliminary caveat, there are specific state laws (i.e., like those regarding "powers of  attorney") that govern the authority, responsibility and liability of agents and fiduciaries.

Read enlightening response of Craig Reaves in his original post.

Reference: The New York Times – The New Old Age Blog ( January 18, 2012) "Ask the Elder Law Attorney: Disclosures and Loans"

Drug-Managed Dementia Dilemmas

In the modern world, drugs can be either a blessing or a curse. Knowing when and why is as important as what, especially when it comes to prescribing anti-psychotics for elderly nursing home patients.

Fact: Dementia and Alzheimer's can prove to be huge challenges for the healthcare institutions we trust to care for our affected loved ones. Unfortunately, these are challenges many institutions meet with the over-use, abuse or improper use of drugs. The good news is that this problematic trend is being identified and resolved for many families.

As recently reported by the Associated Press, the turn to drugs for nursing home patients with dementia is nothing new. As many family caregivers can attest, dementia has a nasty tendency to disorient patients who may grow paranoid or lash out as a result. The safest way to protect them and others has been through medication to calm them. Of course, under-funded institutions also have a tendency to use drugs to a fault, and many use the wrong drugs, like anti-psychotics. These drugs (with names like Risperdal, Zyprexa, Seroquel, Geodon, Abilify, Invega, and older medications) are designed to help people suffering from schizophrenia or bipolar disorder… and are not approved for dementia patients.

Since 2005, these drugs have been under an FDA warning - they can cause an increased rate of death in dementia patients (due to heart attacks and pneumonia). Nevertheless, as of 2007 (according to a recently released government audit), about one in seven nursing home patients aged 65 or older was prescribed at least one of the drugs and, in about 83% of these cases, the prescription was for off-label use, like treating dementia. Ironically, the use of these drugs can create further confusion for the dementia patient and impair his or her ability to interact normally. Not surprisingly, many dementia patients actually have improved dispositions when they are taken off of these drugs.

While it's hard to estimate just how widespread the problem is today, at least it has been recognized and many institutions are correcting the trend. While the use of drugs is not bad in all cases (since there are patients who are severely disoriented), but certainly not every patient needs them or needs them at full strength. This is just one more concern to bear in mind when you visit your elderly loved one and when choosing the right nursing home for them. Be sure to ask about their protocols and procedures regarding the prescription of drugs for patients with dementia and/or Alzheimer's.

Reference: The Associated Press via ABC News (September 14, 2011) "Push Underway to Cut Drugs for Dementia Patients"

Beware Of "Tax Filing" Scammers

There are certain life forms that, well, just shouldn't be counted as members of the human race. I count scammers who prey on seniors as part of that club. It seems a new scam is making the rounds now. This is a tax "filing" scam, promising money from the government... if you just file a few new forms with our friends at the IRS and pay a "processing fee" to the preparer. Problem: Neither the forms nor the "processing fee" is legit.

This latest scheme preys on the anxieties of seniors regarding the Cost Of Living Adjustment (COLA) -– or lack thereof.

According to the IRS and a recent warning from AARP, this summer has seen a dramatic increase in filing scams. Scammers spread false information, claiming that by filing again with the IRS and using new forms you can get government money. The most widespread scam claims the government is offering money to offset the lack of the annual COLA, and that by paying a $60 processing fee to a preparer with a new form you can receive as much as $3,000. Right.

Fact: There is no such program. In reality, in the future you can expect the government to chip away at the COLA, rather than increase it. In the meantime, however, that "tax preparer" already has pocketed the "processing fee" of his victim and, to make matters worse, now has a document exposing all their personal and financial information. Can you say "identity theft"?

Teaching point: Help protect yourself and your loved ones from such scams by checking the IRS and the AARP websites for information about both legitimate programs and scam/fraud warnings.   

Reference: AARP.org (July 25, 2011) "No COLA? Crooks Promise Help"