Assisted Living

 Protecting the assets of elderly parents: 

A guide Seniors with dementia have poor memory, thinking and social skills, which makes them more vulnerable to elder fraud. By 2030, the number of people suffering from Dementia will reach 82 million.

You should speak to your parents if they are experiencing early signs of Dementia. As dementia is a progressive, more severe disease, the greater the chance that they will lose their investments.

If you're unsure whether your parents have dementia, look out for early signs like:
Problems with balancing your checkbook, calculating changes, and organizing

 financial documents

Bank calls not returned
Their bank account is empty of money
Unusual purchases
Late or unpaid bills

Elderly people with Dementia have a higher chance of being exploited by criminals due to their cognitive impairment. Bloomberg reports that elder financial abuse is on the rise, with over 1 million Americans aged 65 and older losing more than $500 million in the United States last year. These are some of the most common senior scams:

Stealing outright
Phone calls from threatening numbers
Fraud schemes
Unauthorized Transfers of Assets
Lottery scams
Phishing via electronic means
Scams with mortgage loans
High-fee investments
Scams in insurance
Internet dating scams

Scammers are known to prey on seniors suffering from memory loss by calling, emailing, and even going in-person. Seniors are not afraid to share their social security numbers or credit card information with someone they do not know. You can protect your loved ones by being aware of:

Checks and legal documents may have strange signatures
Transfers of unaccounted money
Sudden changes in the will of your parents
Modifications to mortgages and loans
Cash or jewelry missing
Credit lines that are new
Telemarketers are in high numbers
Unknown numbers repeatedly calling you.
Written threats of extortion
Unusual requests to make charitable donations

Ask your parents if you see any of these. You can submit a tip online or contact your local FBI office if you suspect they were scammed. You can also add your parents' numbers to the National Do Not Call Registry. This will prevent scam calls.
Is Medicaid able to take the assets of your elderly parents?

Senior living costs range from $70,000 to $170,000 annually, which is higher than most people's annual income. To pay for their care, most seniors turn to Medicaid. Medicaid is a program that requires applicants to have low income and assets.
Seniors want to protect their assets and plan to pass them on to their loved ones. Medicaid is strict in enforcing these requirements. They require seniors to sell their assets and exhaust any savings before they will offer coverage. Medicaid will pay for senior living once your parents no longer have any assets to pass to their heirs.
Additionally, if your parents die, the government will attempt to recover any benefits it paid for senior care. This is called "estate recovery." The tips below can help you minimize the impact of Medicaid on your parents' estate and prevent elder fraud.

Talking to Your Parents
Talk to your parents first about protecting their finances, especially if your parents have early-stage Dementia. To avoid any conflict, it is important to have emotional conversations about finances.

Talk to your parents as soon as you can. The more elderly they get, the more likely it is that they will be scammed. It will be easier to talk about money management and memory loss in the early stages of Dementia.

Your intentions are important. Don't push your opinions on them. Instead, let them make their own decisions. Communicate your concerns and the common financial pitfalls that memory loss sufferers face.

Give them some time. Seniors can become defensive and emotional as they try to manage their finances. They may not be able to accept the fact that they are experiencing financial difficulties. It is important to be patient with your children and give them space and time when needed.

Incorporate a third party. You and your parents can benefit from the guidance of a professional financial advisor or elder law attorney to help you protect their finances.

How to Protect the Assets of Your Older Parents
These are some tips that you can use to protect your loved ones' assets after talking with them. This will protect your loved ones from fraud and greedy insurance companies.

All of your children's personal information should be gathered. Ask your parents where their financial documents and personal information are kept. Keep a log of all the information and make sure it is moved to a safe location.

Access their investment and financial accounts - Get access to all their financial and investment account, including credit cards and mortgages. For any unusual charges, make sure to check their bank statements every month.

Locate any existing POAs and living trusts. Determine if your parents have created a Power of Attorney, or a living trust. Locate any documents they have and keep them safe.

Hire professionals - Consider hiring an accountant, financial planner or advisor to help you manage your parents' finances.

Consider becoming your parents' guardian. If your parents are showing early signs of dementia, it may be worth becoming their guardian. It will be easier for you to make financial decisions in the future.

Set a daily spending cap - It might be a smart idea for parents who use credit or debit cards to agree on a spending cap. This will stop scammers taking large sums of money from your parents.

Find out more about your parents' estate. Ask them about their plans for the future and what they have in store. It is important to not be biased and let your parents choose the best way to use their assets. This will ensure that there are no unaccounted assets that could be vulnerable.

Designate a durable POA (power of attorney) - A durable POA is a legal and financial representative that can act for a person financially or legally if they become incapacitated. This will help those with dementia avoid having their assets taken by court proceedings.

Establish a living Trust - Discuss with your parents the possibility of establishing a trust and designating a trustee. This will give you guidance for managing your parents' estate if they are unable to manage it themselves.

Block scammers – Add your parents to The National Do Not Call Registry in order to stop telemarketers and scam calls.

The bottom line
The cognitive performance of people is affected by Dementia, a progressive worsening condition. You should take immediate precautions to ensure your parents' assets are protected if you notice any signs of Dementia in their elderly loved ones. Elder fraud is a serious problem. Scammers are finding new ways to exploit the elderly every day. These tips will help you to protect the assets of your parents.