Greed is defined as a selfish desire for more of something. When that something is your parents’ hard-earned assets, it can cause siblings to become protective and territorial. Unfortunately, taking advantage of seniors, even one’s own parents, happens more often than it should in our current society. There are ways for seniors to protect themselves and steps adult children can take to prevent greedy siblings from taking advantage.
The first step is to meet with an experienced estate planning attorney. While many senior adults strive to maintain their independence, especially their financial independence, it helps to have a comprehensive estate plan in place. This helps to prevent inheritance theft and can go along way toward ensuring each child receives a fair share. As long as the seniors are still of sound mind, they can create and execute a plan that may include more than just a will. Each situation is unique, but some may need a trust that lays out certain terms for adult children with spending issues or addiction problems. It may include a special needs trust for future heirs that receive disability benefits.
The plan can also include long-term care planning which helps seniors adjust to the progression of aging whether they plan to age in place, downsize or apply to assisted living centers. This may also include Medicaid planning.
The estate planning attorneys will also help senior parents thoughtfully choose agents to serve under a financial power of attorney and a healthcare power of attorney. Having these documents in place will help limit a greedy sibling’s access to bank accounts and other financial matters. The agents selected will be held to a fiduciary duty standard and should be competent and trustworthy.
If the senior parents suffer from cognitive decline and are no longer considered “of sound mind”, then it may be necessary to petition the court for guardianship. If the court determines the person is not competent to make decisions that would be in his or her best interest, it will appoint someone to serve as guardian of the person (to make healthcare and daily living decisions) and guardian of the estate (to manage financial and legal affairs). The guardian(s) will also help prevent a greedy sibling from taking advantage of the ward.
Finally, it may be necessary to take steps to protect personal property items from greedy siblings. Encourage older parents to keep valuables such as jewelry, stock certificates, bonds, coins and other valuables in a safe deposit box. It is also wise to keep financial records, passwords and bank statements in a secure place where the greedy siblings cannot gain access. There should be instructions left for the agent of the power of attorney and the executor under the will to access the safety deposit box and other secure locations when necessary.
Having an up-to-date inventory of personal property also helps to ensure that family members are not taking items out of the home or storage facilities. For more information on protecting assets from greedy relatives, contact the experienced estate planning attorneys at Stouffer Legal in the Greater Baltimore area. You can schedule an appointment by calling us at (443) 470-3599, emailing us at office@stoufferlegal.com, or register for an upcoming free webinar using the link below:
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