{"id":687,"date":"2024-03-26T08:02:47","date_gmt":"2024-03-26T08:02:47","guid":{"rendered":"https:\/\/一起草官网\/?p=687"},"modified":"2024-03-20T16:18:51","modified_gmt":"2024-03-20T16:18:51","slug":"the-elephant-in-the-family-room-diminished-financial-capacity","status":"publish","type":"post","link":"https:\/\/一起草官网\/the-elephant-in-the-family-room-diminished-financial-capacity\/","title":{"rendered":"The Elephant in the Family Room: Diminished Financial Capacity"},"content":{"rendered":"
When we think about a loss of independence, being unable to drive or live on our own often comes to mind. We may not even realize our ability to manage finances could be at risk someday. But failing to prepare for diminished financial capacity can leave us vulnerable to exploitation and abuse.<\/p>\n
Sometimes when people are in the early stages of cognitive decline, no one realizes the impact it\u2019s having \u2014except scammers. Seniors who are already confused about financial matters are prime targets for fraudulent investment schemes. By the time they or their family realize what is happening, it\u2019s often too late. People can lose most of their retirement funds and their financial security can be destroyed \u2013 along with their dreams of using their savings to make life easier for their children and grandchildren.<\/p>\n
Financial exploitation often also occurs when a senior owns a two or three family house, lives in one apartment, and rents out the other(s). Tenants sometimes take advantage of a landlord\u2019s dementia or hospital admission to stop paying rent. The landlord may not realize it, or even if s\/he does, hiring a lawyer to bring an eviction proceeding may be overwhelming. On the other hand, people with dementia may not be able to fulfill their duties as landlords either. They\u2019re likely to have trouble keeping up with the necessary home repairs, and paying the utilities and property taxes.<\/p>\n
This illustrates another common problem: asset management. A multi-family home in New York is often a senior\u2019s most valuable asset, but it requires maintenance. It should also be a major source of income. Certainly, if tenants stop paying rent, the home is no longer a source of income. But even if the tenants are paying, the rent may be stuck at the going rate a decade ago. A landlord with diminished financial capacity may not remember to renew the lease or raise the rent.<\/p>\n
The other side of this coin is debt. Bills often pile up, followed by collection notices. Even if people have the assets and income to pay their bills, it doesn\u2019t help if they no longer have the capacity to reliably do so and no one else is authorized to pay them instead.<\/p>\n
The legal system may intervene through the appointment of a \u201cguardian of the property<\/a>\u201d when people lose financial capacity and haven\u2019t prepared adequately. A guardian of the property assumes the responsibility of managing the incapacitated person\u2019s financial and legal affairs, making these decisions on their behalf. But guardianship proceedings are usually time-consuming and costly, and the person appointed may not align with the individual\u2019s preferences.<\/p>\n Fortunately, we can maintain more control over our financial destinies even during times of diminished capacity through advance planning. Consider which of these proactive steps are right for you:<\/p>\n Keep in mind two caveats:<\/p>\n For these reasons, if you reach out to a responsible estate planning<\/a> lawyer on behalf of a family member, we\u2019ll will want to speak with your relative alone. We do that to protect the privileged nature of attorney-client communications, but also to ensure the person really wants to do the planning. Similarly, even if your family has already discussed who should be the agent under power of attorney together, we will discuss this again confidentially with your relative.<\/p>\n To sum up, you owe it to yourself and your loved ones to face the elephant in the family room. Prepare for diminished financial capacity now \u2013 and protect yourself later.<\/p>\n The steps to plan for diminished financial capacity are based on recommendations from Planning for diminished capacity and illness | Consumer Financial Protection Bureau (consumerfinance.gov)<\/a>. For information on types of scams and elder abuse, see Smart seniors | New York State Attorney General (ny.gov)<\/a>.<\/p>\n To report suspected scams and elder abuse in New York to the State Attorney General, call 1-800-771-7755 or file a report at File a complaint | New York State Attorney General (ny.gov)<\/a>. In emergencies, always call 911.<\/p>\n","protected":false},"excerpt":{"rendered":" When we think about a loss of independence, being unable to drive or live on our own often comes to mind. We may not even realize our ability to manage finances could be at risk someday. But failing to prepare for diminished financial capacity can leave us vulnerable to exploitation and abuse. Sometimes when people…<\/p>\n","protected":false},"author":1,"featured_media":688,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"post_series":[],"class_list":["post-687","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-estate-planning","entry","has-media"],"yoast_head":"\n\n
\n