Financial scams focused on elders are becoming more frequent every year. Many cities now have an entire section of the police department devoted to stopping elder scams because the situation has become so bad.
Of course, not all seniors are ripe for being taken advantage of. Criminals know this, so they focus on one group. They are a senior with a deceased spouse who is not readily familiar with money issues.
There are a wide variety of scams that can be used in these situations. The fundamental goal of all of them is to get the senior in question to sign a money transfer. Fortunately, there is also one way to stop all of these criminal endeavors.
Taking the ability to make financial decisions away from a senior is the way to put an end to the scams. The power of attorney does just that. If anyone tries to move money, you will get a call from the bank or investment institution first.
The power of attorney has been around for a very long time. Most of us know of it in regard to medical care. It is used all the time to establish who has the right to make medical decision if a person is in a coma and so on.
In this case, we are not talking about bodily health, but we are talking about financial ones. With the power of attorney, you became a signator on the financial accounts of your parents. This means money cannot be moved without your approval.
The power of attorney is a relatively short document, but it packs a huge punch because of the fact it grants vitally important rights to someone. A power of attorney is highly regulated and you should use an attorney to form one so you get it right.
Legal issues are great and all, but what about the child parent relationship? Discussing this subject with your parents is probably something you associate with getting a bad tooth pooled. Painful that it may be, it must be done.
Keep in mind, some elder parents will be happy to turn over the financial chores to you. With age comes a certain acceptance level. Some, of course, will fight the decision tooth and nail. It is ultimately their life, so sometimes you just have to live with it.
Is a power of attorney legally required as your parents get older? No, but it often makes a lot of sense when it comes to avoiding problems with scams.
