Caregiver Tip of the Month

When your mother (or father) gives you their financial Power of Attorney, they still have the legal right to handle all of their own financial affairs for as long as they remain legally competent. The only thing that has changed is that you now also have the right to handle their financial affairs. The extent of your involvement depends on their needs and wishes. You may take over full responsibility for all of their financial affairs, or you might handle only those things for which they want or need your help.

As parents grow older, their ability to make sensible financial decisions often becomes impaired. For example, they may start buying a lot of unnecessary items from catalogs they receive through the mail, make purchases by calling the toll-free telephone numbers they see advertised on TV, or buy things or make donations as a result of telemarketing calls.

To help protect your loved one, you may need to become somewhat of a detective. Once a month or so, take a look at the statements they receive for their checking accounts, savings accounts, brokerage accounts and credit cards. Look for any unusual expenditures such as checks written for large and unexplained amounts, large amounts charged to their credit cards, smaller amounts charged to their credit card that appear every month for items such as memberships, subscriptions, etc. Then, discuss any potential problems you find with your parent, and help them resolve them.

If they send and receive emails, they may also mistakenly respond to deceptive emails because they are unaware of the wide range of devious scams used by identity thieves. They grew up in a world where, for example, if it looked like a horse and sounded like a horse, it was a horse. On the other hand, we, as their adult children, have learned that emails are often trojan horses with malicious intents.

Even if you don't have your parent's financial Power of Attorney, you can help them avoid financial mistakes, or help them fix problems if they do occur. But, it's often easier to do if you do have their financial Power of Attorney.

10 ways to help your parent protect themselves

1. Their wallet or billfold. Copy the contents; do both sides of each license, credit card, debit card, etc. (If you copy more than one item per page, match the front and back side of each item with a handwritten notation.) Then, if their wallet or billfold is lost or stolen, they (and you) will know what they had in it and the account numbers and phone numbers to call and cancel. Keep the copy in a safe place. If you have a scanner on your computer, scan it and store it on a CD, memory stick, flash card, or even a floppy (if you still use them), not just on your hard drive.

2. Their Social Security card. Take it out of their wallet or billfold. Have them keep it at home with their other important papers. Don't allow their Social Security number to be printed on their checks. And, the next time they renew their driver's license, have them tell the examiner that they don't want it on their license; most states will comply.

3. Credit reports. Have them get and review their credit reports at lease once a year (or you review the reports for them) to spot any fraudulent credit accounts a thief may have opened in their name. Get reports from all 3 credit reporting agencies — each one probably has different information about their accounts. They can order one FREE report every year from each credit reporting agency.

4. Bank and credit card statements. Check them thoroughly every month, item-by-item, to see if any fraudulent purchases have been made.

5. Old credit card and ATM receipts, and other financial records. When they are no longer needed, have your parent shred them if possible. Otherwise, tear them into small pieces and put them in their kitchen garbage — not their recycle bin.

6. Paying bills. Warn your parent so they don't put payment envelopes in their mailbox for the mailman to pick up. A thief can get there first and steal their checking and credit card account numbers simply by opening their mail. Instead, take their payment envelopes to the nearest Post Office or U.S. Mail drop box.

7. Caregivers and Credit Cards. If your parent has one or more home health aides, homemakers or companions come into his or her home every few days, your parent could be faced with an unnecessary financial risk if they have a credit card with a high credit limit. To protect them from a major financial loss if that credit card were stolen, have them apply for a credit card with only a $1,000 limit. Then, ask them to put their high-limit card into a bank safe deposit box for safekeeping, along with any valuable jewelry they may now have around the house. By taking these steps, your parent's potential financial loss will be minimized in case their new credit card is stolen, while the $1,000 credit limit will still allow them the freedom to make most purchases they want.

8. Credit card solicitations. To keep thieves from applying for credit cards from offers your parent receives in the mail, tear each application into small pieces and put them in their kitchen garbage — not their recycle bin. To stop receiving prescreened credit offers, call 1-888-5-OPTOUT (1-888-567-8688); to reduce junk mail, annoying telemarketing calls, and unwanted email, click here.

9. "Convenience Checks." The so-called convenience checks their credit card company sends out to encourage your parent to spend more money are an easy target for thieves. Most people don't realize they are real checks. If a thief cashes one he finds in their trash, it will show up as a cash advance on their next statement. So, whether the checks come along with their monthly bill or in a separate letter, tell your parent to throw them just like other financial records described in #5 above.

One more note about "convenience checks." Far too often, a packet of convenience checks includes one already made out for a large amount of money. Older people can become confused and think that someone has sent them money for some reason or another. Then, they cash the check without realizing it is a cash advance against their credit card. To protect your parent from this mistake, it may be necessary for you to watch their mail and throw these convenience checks away, as described in #5 above.

10. Teach them about email scams. Crooks frequently use official-looking mail to steal someone's financial identity. Some of the latest scams involve IRS forms, particularly W-9095 or W-8888. They're fakes designed to get you to reveal personal financial information. If your parent gets them, or any other form from the IRS that they are suspicious about, call the IRS at 1-800-829-1040 before filling them out.

email scams you can help your parent watch out for

Get Tax Refund on your VISA or MasterCard Now! This official looking email even includes the official IRS logo, but it's just a scam to get someone's credit card number. There are 2 reasons why this email is a fake. First, the email supposedly comes from irs.org. The ONLY email address the IRS ever uses is irs.gov.

Second, and even more important, the IRS NEVER issues a refund via a credit to a credit card. The ONLY way the IRS sends out refunds is by check, or by direct deposit to someone's bank account. In the latter case, it's important to remember that the IRS will never ask your parent for information about their bank account (or credit card) in an email. Instead, an official form must be filled out and mailed to the IRS, or sent electronically via their secure website.

Receipt for Your Payment. This email claims to be a receipt for a payment you made to someone you don't know, often for a purchase made on eBay. The official looking email also says, "If you haven't authorized this charge, click the link below to dispute transaction and get a full refund." If you make a mistake and click on that link and follow the instructions, you will give an identity thief all of the personal information he needs to steal your identity and ruin your credit rating.

Welcome. This email wants you to believe that you signed up for some sort of online service and gives you a "Confirmation Number, Your Login ID, and Your [temporary] Password ID." It then says something like, "Please Change your login and change your Login Information by clicking on this link and following the instructions." As we've said before, don't do it! DELETE the email without clicking on the link. Otherwise, you are giving an open invitation to an identity thief.

Unlock or Reactivate Your Account. We've seen several different versions of this scam. Basically, emails like this tell you that your XYZ account has been blocked or frozen to prevent fraud and/or to protect your personal information. To unblock, unfreeze or reactivate your account, the email goes on to say that you must "confirm your account access information" or "verify your account." If you click on the link in the email and follow the instructions, you will give an identity thief all of the information he or she needs to ruin your credit rating.

Update your billing information. You receive a courteous, official looking email from a well-respected company that asks you to update your billing information. The email even includes a convenient link for you to click. DON'T DO IT! Regardless of how well-known the company is, the email is a FAKE! If you do click on the link and enter your information on the page it takes you to, even if that page looks official, you've just allowed someone to steal your identity. Instead, if you suspect that your billing information does need to be updated, go directly to the company's Web site through your browser, NOT through your email program.

Variations on this theme. You receive an email from eBay or PayPal, or from a financial institution or stock broker. Their email says that they have noticed suspicious activity on your account, and to protect you from identity theft, they've suspended your account. To clear things up, you are told to click on the link they've included and resubmit your personal information to verify your account.

Once again, DO NOT click on any link in an email that involves your personal information. If you do need to update your account information, or if you just want to make sure that your information is up to date, go directly to the company's Web site using your browser, NOT your email program.

Scam emails look very real, and crooks are getting better at it every day. It is very difficult to identify fake emails, even if the email includes a link that begins with "https://." The "s" after "http" is supposed to mean that it connects to a site that's safe and secure, one that protects your private information. But, we've recently seen scam links that begin with "https://" and then redirect you to a crook's website without your knowing it.

You missed jury duty - a telephone call. Someone claiming to be a court official calls and says that you missed jury duty. Then, they offer to fix things up. All they need is your Social Security number and date of birth. Don't fall for it. It's another scam. Your Social Security number and date of birth are all that a crook needs to steal your identity and ruin your credit rating.

Bottom line – protect your personal information. NEVER give out your Social Security number, credit card numbers or other personal identification information to an unsolicited source. Remember, a legitimate company will never call you to ask for this information over the phone or through an email.

more helpful information

For more information, the Summer 1997 issue of the FDIC Consumer News contained an excellent article, Financial Caregiving: A Survival Guide. It's just as relevant today as when it was written 10 years ago.

Our visitors ask ...

Q. I work full-time. My husband has been disabled since 1999, and has now reached the point where he needs full-time assistance. As his spouse, could I draw a check from Social Security to stay at home and take care of him? If so, how would the benefit be determined?

A. Unfortunately, Social Security does not pay benefits for someone to take care of their disabled spouse. However, we have two questions:

1. Is your husband receiving disability benefits from Social Security? In general, someone is eligible for disability benefits if they worked for at least five of the 10 years just before they became disabled.

2. Are you age 62 or older? If you are, you can apply for early retirement benefits. They will be based on either your husband's work history or on yours, depending on which one will produce the higher benefits for you. But, because you would retire early, your benefits would be reduced somewhat. For more information, check out the article, Social Security Benefits: When Should You Retire?

Daily Living Solutions

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As we grow older, it often becomes difficult to use many everyday products because of arthritis and other conditions. If you or a loved one needs a little help – or a lot – we've selected a group of practical and affordable solutions from our affiliated merchants to help overcome those limitations.

Whether you are looking for yourself, or to help an elderly senior continue living in their own home, you'll find a wide variety of supplies and accessories – raised toilet seats, safety rails, incontinence supplies, large-handle eating utensils, pain relief, diabetic supplies, pill splitters and crushers, big-button telephones, canes, walkers, rollators, wheelchairs – and much more.

Everything is sorted into convenient categories in our Solutions for Seniors section.

Caregiving – Finding the money for care at home

A variety of resources can help pay for care at home. We discuss these resources in some detail in our article 12 tips to help you find money (and free resources) for care at home.

Our visitors ask ...

Q. Where can I find Medicare or other low cost insurance for my Mom? She is 69 years old and never worked.

A. The ONLY insurance available for people age 65 or older is Medicare or Medicaid. If your mother has Medicare, she can also purchase private Medicare Supplement (Medigap) insurance that fills in the blanks of Medicare.

Regardless of whether they worked or not, everyone age 65 and older who is a resident of the United States is eligible to enroll in Medicare IF:

1. they are a citizen of the United States, OR
2. they are an alien lawfully admitted for permanent residence and has lived in the United States continuously for 5 years.

If your mother is receiving Social Security benefits based on your father's work history, she is automatically eligible for Medicare if she was married to your father for at least 10 years. If this is the case, there is no premium for Part A, Hospital Insurance. If she cannot afford to pay the premiums for Part B (for Doctors and other medical professionals) and Part D (Prescription Drug insurance), federal programs are available for low-income people.

Your mother is eligible for Social Security benefits if your father was credited for 40 quarters of working in covered employment (that is, if Social Security taxes were deducted from his paychecks).

Eligibility for Social Security, Medicare and Medicaid varies based on each person's personal situation. For complete information, go to your nearest Social Security office. They will help your mother enroll in Medicare, or if she isn't eligible for Social Security benefits, they may be able to help her apply for Medicaid.

Recommended Reading and Videos

Many excellent books and videos can help guide you through the caregiving process. For our recommendations, including a brief description of each one, click here.

The material on this site is for informational purposes only, and is intended as a supplement, not a substitute for medical advice, diagnosis or treatment provided by a qualified health care provider. More