Wealth and Honor

Helping Families Navigate the Financial Challenges of Age Transitions

Category: Family Relationships (Page 6 of 6)

The Case Files – Episode 1: “Fool me once, shame on you…”

August 19, 2019 /

Wealth and Honor is a website dedicated to helping families navigate the financial challenges of age transitions. The site now has a YouTube Channel to host “edutainment” videos featuring non-legal commentary on actual court cases involving will disputes, elder financial abuse, estate litigation, fiduciary liability, and other issues of aging, death, and wealth.

Court transcripts are condensed into a factual summary with popular sitcom characters providing faces to the actual characters of the case, followed by a non-legal commentary of lessons to learn and missteps to avoid.

https://youtu.be/6gBLpiWQX9c
The Case Files Trailer

The first episode covers the case of Lintz vs Lintz, a 2014 case decided in the California Appeals Court, that includes claims of breach of fiduciary duty, elder financial abuse, undue influence, among other claims. Viewers are encouraged to first watch a presentation of commonly used terms before watching the case episodes.

For a full text of the court transcript, click here.

One Family’s Journey Through Guardianship Hell

August 5, 2019 /

In one of the saddest yet too-common stories about what happens when families fail to plan, this post from investigative journalist, Gary Weiss, for NextAvenue.org outlines five mistakes that one family made on their journey through guardianship hell.

“You sit there and shake your head how things can go that bad that fast,” says Frederick Paugh, a field investigator with the New Jersey Long Term Care Ombudsman who examined some of the financial aspects of the case at the request of Ada’s assisted living facility. “ But you know what? It happens.”

What ended as a descent into legal hell began in Italy as a love story. Read the rest of the story here.

Source: One Family’s Journey Through Guardianship Hell

What are the “Four-P’s” of Financial Caregiving?

August 1, 2019 /

If you are one of the millions of those who identify themselves as part of the “Sandwich Generation” then you may be largely responsible for the financial decisions and well-being of an aging parent or loved one. Most will be thrust into the role largely unprepared and learn through on-the-job training. The problem with this approach is that the job is not an internship where an entire team of superiors form a safety net around your inevitable mistakes. Furthermore, the financial decision-making responsibilities are often added to the even greater stress of providing emotional or physical caregiving. Caregiver Burnout is a serious modern condition suffered by millions who are providing a sometimes overwhelming level of care.

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Like every aspect of caregiving, the motivation behind financial caregiving has to be one of love, honor, and respect for the one for whom we are providing care. To do the job effectively means that we need to educate ourselves. That’s what motivated me to write the book, What You Need to Know, back in 2012.  I thought I knew all there was to know about financial caregiving until I became one. I was a professional financial planner after all. I had worked with clients for over thirty years helping them prepare for financial independence.

But in spite of all this preparation, and even with a healthy investment portfolio, it soon became clear that my parents were going to need someone to get intimately involved with their finances. Someone was going to have to organize and take over the tax reporting, bill paying, income tracking, insurance renewals, Medicare supplement choices, Prescription Drug Plans, Social Security check deposits, phone service, internet service, online parts ordering, sale of the unnecessary second vehicle, getting new Wills done, making sure Powers of Attorney were in place, helping with physician choices, etc., etc., etc.

As order evolved from chaos, I began to organize what I needed to know around four major areas – what I later called “The Four P’s” that include the following:

  • People
  • Property
  • Programs
  • Plans

In subsequent posts, I’ll delve deeper into each of these areas to suggest what you need to know about each of these in order to be an effective and honoring financial caregiver.

How Much Do I Need to Know About My Parent’s Finances?

July 26, 2019 /

Few people want to stick their noses into their parents’ business. For many, it’s the last taboo to inquire into your parents’ financial lives. This is one of those “it depends” questions. It isn’t always necessary for you to know every detail about your parents’ financial affairs. In fact, the less you need to know, the more likely they may be to tell you what you should know.

If your parents are still in good health mentally and physically, and are managing their affairs with no need for assistance, then the amount of detail you need to know is limited. They may be reluctant to tell you how much they are worth, or to reveal the contents of their wills. That’s okay. In that case, let them know that your concern is to know where to find important records in the event something happens. 

If one or both of your parents are beyond their 80’s or if they are showing some signs of needing assistance with financial matters, then you are going to need to know more than simply where things are. And if you are serving as a conservator, trustee, or exercising authority under a power of attorney, then you have truly become a financial caregiver and will need to know as much as possible about their arrangements.

I use the “Continuum of Dependence” graphic below to visually show how much information an adult child or other family member needs to be aware of depending on the level of dependency someone is experiencing.

How Much Do You Need to Know?

Continuum of care

Seven Conversation Starters to Initiate Talks about Money with Your Parents

July 23, 2019 /

The question I am most often asked is “How do I begin the conversation with my  parents?” I always answer, “Very carefully.” The truth is there is no one best way to begin the conversation. So much of it depends on circumstances and personality. Circumstances – usually health issues – may be at such a crisis point that you simply must take action with or without your parents’ approval – either by asserting your authority as attorney-in-fact under a valid Power of Attorney, or by seeking a court ordered guardianship or conservatorship. Your proximity to your parents, sibling agreement over what needs to be done (or the lack thereof), whether both parents are living, and the complexity of your parents’ financial affairs are just a few of the circumstances to consider. You also need to act quickly if you begin to notice impulsive spending or investment decisions.

Personality and family dynamics are also factors, and the relationship between child and parent doesn’t always make a lot of sense. Your eighty- eight year old father may still view you as the “baby” of the family even if you are sixty-two years old and have raised a family, managed a medical practice or a business of your own, and are practically retired yourself. You are the baby and you always will be. So before you begin the conversation in the first place, you might want to talk to a family counselor, their personal physician, or clergy member before you set yourself up for resentment. It’s okay if you are not the one to initiate the conversation.

Nevertheless, here are some ideas on getting the conversation rolling that you can try out.

  1. The “I’ve got this friend” technique. This ice-breaker allows you to set up a hypothetical situation involving a real or fictitious friend who is wondering how to talk to their parents about money. It starts something like this: “Mom (Dad), I’ve got this friend who needs to ask her parents some personal questions about their finances, but isn’t sure how to ask. What should I tell her?” Chances are your folks will be on to this one soon after you ask it, and hopefully you can turn it into a good laugh by your honest confession that the “friend” is you. Once the chuckle is over, you can come back to it with a “Well…what would you say?” and just let them talk.
  2. Ask how their friends are doing. Once your parents pass the age of seventy-five, chances are they will be attending more friends’ funerals or visiting more friends in nursing homes. You probably will have known these friends for a long time yourself, as well as the children of these friends. While remaining sensitive to the situation, use these events to ask how their friends are doing. Something like, “Mom, now that Jane is widowed, who is watching out for her?” Or “Dad, it’s sad to see your friend Sam lose his independence like that. Does he have children close by who can help with his business?”
  3. Ask for help with your own finances. If your parents are past seventy, this means you’re probably past forty and are making some important financial decisions yourself. Asking for Dad’s advice on preparing your will or how to invest your retirement funds can go a long way to opening up a dialogue on his own business. Maybe your dad is fully capable of managing his finances now, but this conversation can ease the next one when the time comes for you to be a little more inquisitive.
  4. Use the headlines. Unfortunately, the headlines can give you a lot of ammunition to use to open a conversation about your parents’ finances. All you have to do is google the phrase “financial abuse of elders” and you’ll be provided with dozens of sites and news articles about the vulnerability of seniors for financial scams and high-pressure sales tactics. Print out one of these articles, or clip one from your local newspaper and show it to them. Use an opener like, “I doubt this could ever happen to you, but…” Their response will tell you how open or closed they are to the subject.
  5. Movies are great ice breakers. If your parents’ sight and hearing haven’t diminished, a good movie that deals with the subject of aging is a great ice breaker. One caveat, don’t use movies that are too dramatic or serious. Humorous movies are better at breaking down barriers to talking about this. Also, be sensitive to ratings that may not be comfortable for a generation that may see many of today’s PG-13 movies as too “racy”.
  6. Try point blank honesty. If your parents are cut-to-the-chase kind of folks, then just try being upfront with them. “Mom and Dad, you’re both getting older and quite frankly, you’re not as sharp as you used to be. If something happens to either or both of you, I don’t know where to find your wills, or even where all your accounts are.” You may be surprised at how open they are willing to be if you show a compassionate yet firm resolve.
  7. Ask about their advisors. If your parents use a financial advisor, ask for an introduction, or for permission to attend their next meeting with him or her. Sometimes advisors will be hesitant out of privacy concerns since they are bound to certain confidentiality standards. Getting written permission from your parents that the advisor is free to discuss their situation with you will generally alleviate these concerns.

However you begin the conversation and no matter the reception you get, the point is that the adult child is (and should be) the first line of defense for his or her parents just as they were (or should have been) your first line of defense growing up. Perhaps your past was more tumultuous, and perhaps your present is not conducive to you taking on the responsibility now. But you can be an advocate, and you can be involved to ensure that their financial affairs continue to provide security and dignity in their twilight years.

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