The U.S. Department of Veterans Affairs has a government benefit that covers the costs of caregivers, assisted living or a nursing home. The benefit is known as Aid and Attendance or A&A and is available to qualified war era veterans and surviving spouses. Surprised that you’ve never heard of it? You’re not alone, it’s probably one of the lesser known benefits.
For a well-kept secret, it’s a wonderful benefit.
Elder Americans were robbed of an estimated $4.0 billion in 2013. Some have called elder abuse “the crime of the century”. Seniors who lose their money are more likely to go into a nursing home, go on Medicaid, or suffer severe depression. And, once an older adult has been ripped off, he or she is likely to succumb to other fraudulent financial schemes.
Here are nine warning signs to watch for in older adults which may indicate financial abuse and exploitation is occurring: 1) taking a large amount out of the bank or other cash accounts, 2) making numerous withdrawals of smaller amounts – say $100 at a time, 3) writing a large check to someone they do not know, 4) changing power of attorney or beneficiaries on insurance or investment accounts, 5) bouncing checks or bills going unpaid when there should be enough money to cover bills, 6) making unusual or unnecessary purchases (i.e. golf clubs or jewelry), 7) agreeing to make unnecessary home repairs, 8) becoming too close with a much younger person or an inappropriate person, 9) having a caregiver that is too interested in the finances.
Most everyone worries if they will have enough income at retirement and Social Security is one of the pillars needed for a comfortable retirement. One of the biggest mistakes we often make is collecting social security at age 62. That mistake alone can cost over hundreds of thousands of dollars. The reason? By waiting until age 70 to collect your social security benefits you are increasing your payments dramatically.
Every year you delay collecting, to generally age 70, you are increasing your benefits by 8%. Where else are you going to get a guaranteed 8% return. Before making a decision consider this.
It’s not easy becoming the financial caregiver for an aging parent. Often the adult children take on this role slowly over time and reluctantly. Far from being a simple job a financial caregiver must act prudently and in the best interest of the person. Mistakes and financial disaster can happen especially if you are also tending to the aging parent’s health and other needs. Horrible stories are often heard of family members, caregivers and others who financially exploited aging seniors.
It’s critical to understand the fiduciary responsibility you are assuming by becoming the financial caregiver. Frequently you will need to manage the finances even more closely than your own. Keep good records, account for all sources of income and expenses, maintain adequate insurance, timely pay all bills and taxes, and make certain all investment decisions are made wisely.
