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  • Navigating the World of Cryptocurrency: A Guide for Parents and Teens

    Navigating the World of Cryptocurrency: A Guide for Parents and Teens

    In an era where digital innovation shapes every aspect of our lives, it’s no surprise that our teenagers are drawn to the allure of cryptocurrency. This digital form of money represents a shift away from traditional financial systems. If you’re the parent of teens, understanding cryptocurrency is crucial so you can provide them with the guidance they need to navigate this new world safely and wisely. I’m here to help you learn what you need to know.

    What is Cryptocurrency, Exactly?

    Cryptocurrency, which folks also call “crypto” is, in essence, virtual money that can be used to buy goods and services. It can also be traded for profit, much like stocks. However, unlike the dollars in your wallet, crypto exists only in the digital world. The crypto universe is vast, with thousands of digital currencies out there.

    Crypto is based on blockchain technology, which ensures transactions are secure, transparent, and decentralized, so they’re not controlled by any government or financial institution (there are pros and cons to this that we’ll describe below). Imagine blockchain as a digital Lego tower where each block represents a piece of information, and once a block is added to the tower, it can’t be removed or altered, making it a super secure way to keep track of cryptocurrency transactions – kind of like a high-tech, unbreakable diary.

    A critical component of understanding cryptocurrency is the concept of a crypto wallet. Unlike a physical wallet, a crypto wallet doesn’t store currency; instead, it holds secure digital keys that allow access to cryptocurrencies.

    What Parents of Teens Need to Know

    To the younger, digital-native generation, cryptocurrency is an exciting and innovative concept. They’re not afraid of technology and investing online. They’re aware of the potentially significant returns on investments, stories of cryptocurrency millionaires, and the prospect of being part of a cutting-edge financial movement. This is why crypto is very attractive to teens.

    Parents should know that while there are no laws specifically prohibiting teens from owning or trading cryptocurrency, most platforms and exchanges require users to be 18 years old. For eager and younger investors, custodial accounts present a solution. These accounts allow parents to oversee their teen’s investments, providing a controlled environment where teens can learn about digital currencies.

    These accounts not only allow parents to monitor their teen’s investment activities but also offer a hands-on educational experience in managing and understanding digital currencies. It’s a balanced approach that combines the practical aspects of investing with the security of parental oversight. And if you’re a business owner, you may want to consider paying your kids and then putting up to $7,000 of what you pay them into a Roth IRA using cryptocurrency and a self-directed IRA structure. By doing this, you can invest that $7,000 in cryptocurrency, and let it ride for the next 50 years. Imagine what it will be worth to them then, and it will grow 100% tax-free.

    For more information about custodial accounts and self-directed IRAs invested in cryptocurrency, schedule a call with us.

    Be Aware of the Risks

    While learning how to invest in crypto can be a great learning activity for you and your teen, be aware of the risks involved. For one, the crypto market is highly volatile. Prices can surge or plummet within a short period, making investments speculative and risky. It’s crucial to have open discussions with your teen about the importance of not investing more than they can afford to lose, and about the reality of the speculative nature of digital currency. Teach your teen the importance of research, diversification, and long-term thinking, and you’ll help instill responsible investment habits that will last a lifetime (and make you proud!).

    Most importantly, ensure you know how to get into their cryptocurrency accounts in case something happens, and that someone knows how to get into your accounts as well. The biggest risk to your cryptocurrency investments is that you haven’t documented them such that someone could access your accounts when something happens to you. Contact us and let us help!

    Alternatives and Best Practices

    For families that find direct investment in cryptocurrency too daunting, there are alternative ways to engage with the digital economy. Encouraging your teen to learn about blockchain technology or exploring investments in crypto-related stocks and ETFs can provide a safer introduction to the concepts without the direct risks associated with cryptocurrency trading.

    However, if you’re ready to make a go at it, here are some best practices to keep in mind:

    Foster a Culture of Learning. The rapid evolution of digital currencies makes continuous learning essential. Encourage your teen (and take the opportunity yourself) to stay informed about the latest developments by reading reputable news sources, listening to podcasts, and even speaking with a financial advisor.

    Establish Guidelines. Before your teen makes any financial investment, it’s important to establish clear guidelines. Discuss together how much time and money is reasonable to invest, the importance of privacy and security in digital transactions, and the expectations for responsible behavior. Setting these ground rules early on can lay a strong foundation for healthy financial habits.

    Embrace the Future. Regardless of whether your teen decides to invest in cryptocurrency, understanding this new facet of the financial world is invaluable for you. The rise of digital currencies offers a unique opportunity for parents and teens to learn together about the future of money, technology, and personal finance. It’s a chance to explore new concepts, discuss values and responsibilities, and prepare for a future where digital currencies may play a significant role.

    Prepare Yourself and Your Teen With Our Guidance

    Whatever the future holds, we believe it’s important to educate your children about finances so you leave a legacy of fiscal responsibility when you’re gone. That’s why we help ensure that when you’re no longer here, your assets – including cryptocurrency – are passed on the way you want, easily, and without your family ending up in court and conflict. We do that by approaching estate planning as a relationship – a lifetime relationship with you as your and your family’s trusted advisor so you have someone to turn to in times of change and uncertainty, and in times of joy and excitement.

    To learn more about how we can guide you and your family to secure the future you want, schedule a complimentary 15-minute call with our office.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session.

  • 3 Estate Planning Documents Your Parents Need Right Now

    3 Estate Planning Documents Your Parents Need Right Now

    Today we’re diving into a topic that’s absolutely crucial: estate planning for your parents. As they gracefully navigate their golden years, ensuring their peace of mind (and yours!) becomes a top priority. Whether they raised you the way you want, or showed you how you want to do it differently, as your parents age, one of the very best things you can do for your own best future, and that of your entire future lineage – your children, grandchildren, and beyond – is to take great care of the people you were born to or raised by.

    The questions you need to start asking now are: How will you help them if they become ill or injured? Who will take care of their bills and make sure their health needs are met? How do they want to be cared for, if and when they cannot care for themselves?

    The starting place is open conversation and a power trio of estate planning tools: the general power of attorney, the power of attorney for healthcare (including a living will), and the HIPAA waiver.

    Let’s break down why these tools are the unsung heroes of comprehensive estate planning for your parents, and how to bring them up so you can support your parents to get them created or updated, no matter how much or how little money they have in the bank.

    1. General Power of Attorney (POA)

    A general power of attorney (or POA)  grants a person you name (often a family member or trusted friend) the authority to manage your financial affairs if you become unable to do so yourself. From handling bills to making investment decisions, the general POA ensures that your financial matters are handled, whether you’re experiencing a temporary illness or a long-term inability to manage your money, such as in the case of memory problems.

    If your parents have assets that you must be able to access easily in the event of their incapacity, you may decide that a POA for accessing their accounts isn’t sufficient, as it can be difficult to get access to bank accounts even with a POA in place and will require court action. In that case, the best course of action is to ensure that their assets are titled in the name of a trust, with you or someone you trust as the named successor trustee, who can step in and handle financial matters for your parents, without any court involvement, when needed.

    2. Power of Attorney for Healthcare and Living Will

    It’s possible your parents already lean on you for guidance with their healthcare decisions, and it’s equally possible they don’t share details of their healthcare with you at all. No matter which side of the spectrum your parents stand on, the question of what will happen to their healthcare needs if they become seriously ill can feel overwhelming —  and trust me, it’s even more overwhelming during moments of medical crisis.

    Thankfully, a power of attorney for healthcare and living will allow your parents to explain their medical wishes to guide medical providers and family members on what treatments and life-saving measures they’d like to have, even in the toughest of times.

    The power of attorney for healthcare designates someone to make these medical decisions on behalf of your parents if they’re unable to do so. This trusted individual becomes the advocate, ensuring that healthcare choices align with your parents’ values and preferences.

    Meanwhile, the living will – also known as a declaration to physicians – outlines your parents’ wishes regarding life-sustaining treatments in the event they’re unable to communicate. From CPR to artificial hydration, this document provides clarity amidst uncertainty, giving both your parents and their loved ones peace of mind that the decisions being made around their care are what they themselves would want.

    3. HIPAA Waiver

    In the digital age, privacy is paramount – but what happens when privacy becomes a barrier to essential healthcare-related communication? Enter the HIPAA waiver, the ultimate tool for opening communication roadblocks in times of need.

    HIPAA (the Health Insurance Portability and Accountability Act) protects the privacy of individuals’ medical records. While this is crucial for safeguarding sensitive medical information, it can sometimes hinder the flow of communication between healthcare providers and family members, especially for the elderly and those incapacitated by an illness or injury.

    By signing a HIPAA waiver, your parents authorize specific individuals to access their medical information and speak directly to their medical providers, ensuring seamless communication and informed decision-making. This is essential in medical emergencies but is also extremely helpful if your parents need help hearing their doctor or understanding their medical advice.

    How to Bring Up Estate Planning With Your Parents

    The best way to bring up estate planning with your parents is to get your own planning handled first. Then let your parents know that in the process of handling your own planning, your lawyer raised the question of whether you were an agent under anyone else’s power of attorney, or named as a successor trustee in your parents’ trust, or if you’re going to be caring for aging parents at some point.

    If you’ve worked with a lawyer and they didn’t ask you those questions, give us a call and let’s review your plan and your parents’ planning to make sure that everything you’ll need is dialed in. This can all get quite messy very quickly, and now is the time to talk with your parents.

    Why the Urgency?

    You might be thinking, “Why the rush? Can’t we tackle this later?” Here’s the scoop: Life is unpredictable, and procrastination can be a costly gamble. Waiting until a crisis strikes to get these tools in place can lead to a whirlwind of legal and emotional chaos, leaving your parents’ wishes unfulfilled and their affairs in disarray.

    By proactively planning ahead, you’re not just checking items off a to-do list – you’re investing in your parents’ peace of mind and yours.

    Don’t wait for a storm to hit – schedule a 15-minute call today to learn how our unique Life & Legacy Planning process is designed with your family’s well-being in mind, offering personalized guidance and support every step of the way.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session.

  • This Change to The FAFSA Rules Could Help Your Grandkids Qualify for More Student Aid

    This Change to The FAFSA Rules Could Help Your Grandkids Qualify for More Student Aid

    Want to contribute to your grandchild’s future college education? The FAFSA Simplification Act, which went into effect last month, now makes it possible for grandparents to do even more to help finance their grandchild’s education.

    In the past, any contributions or distributions from a grandparent’s 529 college savings plan were subject to FAFSA reporting, potentially impacting the student beneficiary’s eligibility for federal financial aid. The new changes, however, bring a breath of fresh air. 

    In this blog, you’ll learn what has changed under the new rule and how grandparents can leverage it to support their grandchild’s educational pursuits.

    Understanding the 529 Account

    First things first – what exactly is a 529 college savings account? It’s a special savings account designed to help individuals, including grandparents, set aside money for future college expenses. Contributions aren’t federally tax-deductible, but the good news is that earnings within the account grow tax-free. When funds are withdrawn for qualified education expenses, they remain untaxed.

    What The New Rule Changes

    When the account owner is a dependent student or custodial parent, the total value of the 529 plan is reported as an investment asset on the Free Application for Federal Student Aid (FAFSA). Previously, if a grandparent owned the 529 plan, any distributions were considered untaxed income for the student, potentially affecting financial aid eligibility. The upcoming change eliminates this concern.

    In a nutshell, a 529 plan owned by a grandparent will no longer require reporting on the FAFSA. Even more impactful is that distributions from this grandparent-owned 529 plan will not be deemed as untaxed income for the student. This opens up opportunities for grandparents to contribute to their grandchild’s education without jeopardizing financial aid eligibility.

    Maximizing Grandparent Contributions

    It’s important to keep the following in mind when you make contributions to a 529 account for a grandchild:

    1 | Funds Must Be Used For Qualified Educational Expenses

    Grandparents can use 529 plan funds for a range of qualified educational expenses, including tuition, room and board, books, supplies, laptops, and internet access. However, certain expenses like insurance, student health fees, transportation, and extracurriculars aren’t covered and may incur a ten percent penalty if 529 plan funds are used toward these expenses.

    2 | The Annual Gift Exclusion

    While grandparents can contribute to their grandchild’s 529 plan, it’s essential to be mindful of the federal annual gift exclusion, which is the amount of money a person can gift to someone else without needing to file a gift tax return. The limit currently stands at $18,000 for an individual and $36,000 for those filing jointly with a spouse. A special rule allows gift givers to spread larger one-time gifts across five years to stay within their lifetime gift exclusion.

    3 | Reconsider Payments Made Directly to The School

    Distributions directly paid to the school from grandparent-owned 529 accounts won’t affect aid eligibility. However, for now, it’s recommended to pay the grandchild directly.

    4 | Timing Matters

    When withdrawing funds from the 529 plan, it’s crucial to do so within the same tax year as the educational expenses. This strategic move ensures smooth financial transactions and adherence to tax regulations.

    5 | Watch Your Withdrawal Limits

    The amount withdrawn from all 529 plans should be no more than the total cost of the qualified educational expenses billed by the school. Excess withdrawals may incur a 10 percent penalty, but there’s a 60-day window to rectify the situation without penalties.

    Helping You Plan For Your Family’s Future In The Most Loving Way Possible

    It’s a heartwarming prospect to be able to help shape a brighter future for the younger generation. By understanding the new FAFSA rule and strategically utilizing 529 plans, you can contribute meaningfully to your grandchild’s education without compromising financial aid opportunities. This makes a 529 account an even better investment tool that not only helps your grandchild afford their education but leaves behind a legacy of love and wisdom.

    At our firm, we believe this is what estate planning is all about – your Life & Legacy. That’s why we refer to estate planning as Life & Legacy Planning. It isn’t just about making a plan for what happens to your assets when you die – it’s about making meaningful, heart-centered decisions that provide peace, love, and guidance to the ones you love today and for years to come in the future.

    If you’re ready to create a plan that takes care of everything you own and everyone you love in the most loving way possible, give us a call to learn what a Life & Legacy Planning Session can do for you.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.

  • What Caregivers Need to Know About Estate Planning for a Loved One With Dementia – Part 1

    What Caregivers Need to Know About Estate Planning for a Loved One With Dementia – Part 1

    Caring for a loved one with dementia is a challenge that millions of families undertake each year. As a caregiver, understanding how a dementia diagnosis affects your loved one’s legal decision-making is crucial to ensuring their wishes are honored and that you’re providing them with the best possible care.

    In this blog, we’ll explore the importance of estate planning, even after a dementia diagnosis, as the best method to ensure the wishes and rights of your loved one are protected.

    Understanding Incapacity

    Dementia is a progressive condition that affects memory, cognition, and daily functioning. As dementia causes your loved one’s cognitive abilities to decline, there may come a time when they’re no longer able to make sound decisions about their finances, healthcare, and overall well-being. 

    When the effects of dementia make it difficult for a person to understand information and make sound decisions, that person is considered to be incapacitated, which means they can no longer legally make healthcare or financial decisions for themselves. This change in their memory and cognition can be emotionally overwhelming for both your loved one and your whole family, and without proper planning, can require court involvement.

    But there’s still some good news. Thoughtful estate planning can ensure that your loved one is cared for by the people they know and trust if they can no longer care for themselves, and even if your loved one has already been diagnosed with dementia, it’s still possible for them to create a legally-binding estate plan during the early stages of the disease.

    Estate Planning In The Early Stages of Dementia

    Every adult should create certain legal documents to protect their rights and wishes, and this is no different for a loved one with a dementia diagnosis. What is important to remember is that in order to create a legal document, you need to have mental capacity – meaning you need to be fully aware of what you’re doing and what the consequences of your choices will be.

    Thankfully, a person doesn’t need to constantly be in a state of capacity to create an estate plan. As long as your loved one has the mental capacity at the moment they sign their estate plan documents, the documents will be valid, even if they regress into a state of incapacity afterward.

    In the early stages of dementia, and ideally long before any health problems surface, your loved one should create (or review and update) the following estate planning documents:

    General Durable Power of Attorney

    A General Durable Power of Attorney (POA) is a legal tool that allows your loved one to appoint someone to make financial and legal decisions on their behalf. Their POA can write checks, pay bills, maintain their home, and manage their financial assets. 

    This document becomes especially significant as dementia progresses. Encourage your loved one to designate a trusted individual as their financial power of attorney while they’re still able to make such decisions. 

    A Revocable Living Trust

    A General Durable Power of Attorney is an important tool, but many financial institutions place constraints on the use of a POA or don’t acknowledge their authority at all. To make sure your loved one has complete protection of their financial wishes, encourage them to establish a revocable living trust and move their assets into the name of the trust. Creating a trust document alone isn’t sufficient. Assets must be retitled, and beneficiary designations updated to ensure all assets are covered by the trust, and that the named successor trustee can step in with ease, when necessary.

    As part of creating a trust, your loved one will name the person they want to manage their assets when they’re no longer able to do so. This person is called the trustee or successor trustee. The trustee and power of attorney are often the same person, but not always. 

    Determination of who should serve in what role, and at what point your loved one should give up control over their financial assets, is part of what we counsel our clients to decide. If you have any uncertainty whatsoever, please call us to discuss. It’s far better to get the right tools in place, and the right people named, early than it is to wait until it’s too late. Once it’s too late, it’s really too late, and your family could be stuck with a court process as the only path.

    By having these two estate planning tools in place and the support of our proactive guidance, you can rest assured that the people your loved one knows and loves will be able to manage their assets for them as their dementia progresses. One of the best things we’ve experienced about part of this process it that the people who have taken care of all of this before they begin to experience dementia are able to relax into a phase of life that can often be full of anxiety because they know it’s been handled.

    Power of Attorney for Healthcare

    Similar to a General Durable POA, a Power of Attorney for Healthcare (HPOA) appoints someone to make medical decisions on behalf of your loved one when they’re unable to do so for themselves. Discussing and establishing a healthcare power of attorney early on allows your loved one to express their medical preferences and ensures their wishes are honored. 

    Their power of attorney for healthcare should also include a declaration to physicians, also called a living will, that outlines their desires regarding medical treatment, life support, and end-of-life care. Creating a declaration to physicians and discussing their wishes with you ensures that their preferences regarding life-sustaining treatment, resuscitation, and other medical interventions are documented and respected.

    The economic burden of caring for a loved one with Alzheimer’s or advanced dementia can be significant – between $2,500 to more than $10,000/month isn’t unusual. The time to discuss these costs, and what you or your loved one want is right now, before dementia or Alzheimer’s makes it impossible to have any choice.

    Plan As Early As Possible

    One of the most crucial steps in preparing for the challenges of dementia is to help your loved one complete their estate planning while they still have the capacity to do so. Waiting until the later stages of the disease can limit their options and increase stress for everyone involved. 

    By addressing legal matters early on, you can ensure that your loved one’s wishes are respected, and their affairs are managed in the way they intended, by the people they trust, without the need for court involvement. 

    If you have a loved one with more advanced dementia, check back here next week as we explore late-stage estate planning options and methods to avoid family and legal conflict over your loved one’s care. 

    To learn more, schedule a complimentary 15-minute call with our office.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.

  • Help Your Parents Avoid These New Financial Scams – Part 2

    Help Your Parents Avoid These New Financial Scams – Part 2

    In part one of this series, we explored two popular scams that are targeting older adults this year: the grandparent scam and cryptocurrency pickpocketing. In this week’s blog, I’m sharing two more scams that you and your parents need to be aware of, plus tips for staying protected.

    Let’s dive in.

    03 | PERSONALIZED PHISHING EMAILS

    Imagine opening your inbox to an urgent email from a seemingly legitimate source – perhaps your bank, a popular online retailer, or even a social media platform. The message claims there has been suspicious activity on your account and urges you to click a link or provide sensitive information to verify your identity. This is the classic phishing email – a crafty attempt to deceive you into revealing your personal data.

    Phishing has been around since email became mainstream, but what has changed is the depth to which scammers feign legitimacy. Even if you or your parents are familiar with phishing email schemes, new approaches and advances in technology are making it harder than ever to detect a phishing email.

    Same Scammers, New Tricks

    Phishers often pose as trusted entities such as banks, governments, or department stores. But in recent years, phishers have been sending their victims more personalized emails to trick them into thinking the message is from someone the victim personally knows or is personally connected with. The email will address the victim by name and may appear to come from a friend, co-worker, or supervisor. It may even contain a legitimate-looking email domain, signature, or logo.

    The email will usually claim that there is a time-sensitive matter that needs to be addressed, such as a gift that needs to be purchased for a co-worker’s birthday or important client, and asks the victim to purchase the gift via online gift cards, PayPal, or crypto.

    For example, you may see an email that reads:

    “Hi Jim, this is Mr. Boss. I’m going to be in meetings all day today but I need to send a gift to our new client right away. Please purchase a $200 gift card on Amazon and send it to this email address. I will then forward it to our client.” 

    Some phishers will pose as banks, lending agencies, or debt relief programs and claim that you have been approved for special credit or financial assistance. In the aftermath of the COVID-19 pandemic, student loan pause, and hurricane season, you may have seen an email like this:

    “Hi Aaron, it’s Gav with Hardship Relief Program. We tried reaching you at your home and did not hear back… I’m not sure if you’ve spoken to an assigned agent yet, but I do see that you’re pre-approved for our Hardship Program. So, what I’m going to do is keep this in a pending status. Please give me a call between the hours of 8 AM and 10 AM EST to go over the details. My number is 555-886-3424.” 

    Identifying Scams: It’s All In The Details

    Before you respond to any kind of email requesting a phone call, consider whether the sender’s request seems legitimate. Did you actually open an account or fill out an application? Is it normal for your boss to email you about important requests? 

    Always scrutinize the sender’s email address, even if it looks legitimate, by hovering your cursor over the email address to reveal its true origin. Avoid clicking on suspicious links, and never share personal information via email, no matter how professional the sender’s email appears. 

    Check the email and “from address” for typos, and verify the information provided by the sender, such as the company name and phone number, by searching for it online. When in doubt, contact the company directly through official channels to confirm the authenticity of the message.

    04 | THE ONLINE OVERPAYMENT SCAM

    In the world of online buying and selling sites like Etsy, Facebook Marketplace, Poshmark, and Craigslist, scammers are increasing their attacks and their success by preying on the good conscience of other people. 

    In the overpayment scam, the fraudster contacts the victim pretending to be interested in purchasing an item the victim has listed for sale online. The scammer offers to purchase your item, usually at an inflated price and appears to make a payment that’s higher than the agreed-upon amount.

    The scammer then requests that you refund the excess amount they “accidentally” sent, and will usually act panicked, upset, and harried. The scammer may even threaten to report the victim to the police for “stealing” the scammer’s money.

    But here’s where the twist comes in: the overpayment sent by the scammer was actually fake – a fraudulent check or a forged payment confirmation email that made it seem like you received funds when in fact the scammer didn’t send anything at all. When you refund the overpaid amount, you’re essentially giving away your legitimate money, and by the time the scam is realized, the scammer has disappeared into the digital abyss.

    To protect yourself and your parents from this sinister scam:

    • Always require online buyers to pay through traceable means, such as PayPal, Cash App, or Venmo. 
    • Avoid sending and receiving money from strangers through non-refundable money transfer services like Zelle.
    • Never accept more money than the purchase price.
    • If the buyer wants a refund, verify that you actually received the funds by logging into your payment servicer account and checking your balance there. Do not rely on a confirmation email which can be easily faked, especially if your payment account doesn’t show any payment received. 

    Preserving Your Assets and Protecting Your Loved Ones

    Staying on top of constantly changing financial scams can feel overwhelming, but with the right knowledge and tools, you can help keep yourself and your aging parents safe from the financial and emotional harm scams cause. 

    We’re available to help guide a discussion with you and your parents about your financial well-being as part of your estate plan, including how to catalog their assets and how to make it as easy as possible for you to help each other in the case of an emergency or scam attempt.

    If you want to know more about how we can help you and your family, call me today at (650) 600-1735. It would be my honor to look after your family’s plans now and for years to come. 

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

  • Help Your Parents Avoid These New Financial Scams – Part 1

    Help Your Parents Avoid These New Financial Scams – Part 1

    Fraudsters and scam artists are nothing new, but changing tools and technology are making it easier than ever for scammers to target their victims, especially seniors. To protect your aging parents (or yourself) from these con artists, it’s crucial to equip yourself with the knowledge of how these scams work and what your loved ones need to know to keep their assets and emotions safe.

    In this two-part series, we’ll explore four of the most recent and insidious financial scams that have surfaced, shedding light on their tactics and providing you with practical steps to shield your parents from potential harm.

    01 | THE GRANDPARENT SCAM

    One of the toughest parts about being the victim of a scam is the emotional and mental stress it usually causes. Scammers intentionally use urgency, alarm, or guilt to trick victims into making hurried decisions to send money to someone who needs “help.”  

    In the new “Grandparent Scam,” fraudsters will call or text senior adults pretending to be their grandchild. The scammer will claim that they’re in trouble and that they need the grandparent to send them money right away to bail them out of jail, buy a ticket home from a dangerous location, or pay for damages caused by a car accident.

    In these scenarios, the scammer will usually ask the grandparent, “Grandma, do you know who this is?” to trick the grandparent to reveal the name of their grandchild so the scammer can use that name for the rest of the phone call. The scammer will then ask the grandparent to wire money to “help” the grandchild and ask that the grandparent don’t tell the grandchild’s parents for fear of them getting upset.

    Some scammers are even using AI to disguise their voices while on the phone with the grandparent to sound more convincing. This scam preys on the love and concern our parents have for their children and grandchildren, and can easily cause young or tech-savvy parents to fall victim as well.

    To protect your parents from being victimized by this scam, talk to them about the importance of never disclosing personal or financial information or the names of their loved ones in a text, phone call, or email. Instead, instruct them to ask who the caller is and to wait for the sender or caller to respond. If in doubt, the senior should ask the sender personal questions that only their real grandchild would know, but a scammer wouldn’t. Most importantly, encourage your parents to contact you before wiring or transferring money to anyone for any purpose, no matter what. 

    One strategy we particularly love is to have a family code word or phrase. For example, your code phrase may be “Cosmo is a spotted dog” and that code phrase would be known by everyone in the family so that if anyone is contacted in an emergency situation, the person could ask what’s our family code phrase, and the person calling, texting, or emailing either knows it or doesn’t. And, if they don’t, it’s a no-go for help.

    02 | PICK-POCKETING YOUR CRYPTO WALLET 

    The world of cryptocurrency brings new investment opportunities for those willing to try it out, but with this new financial arena comes new risks and safety measures. 

    In order to store cryptocurrency, you’ll need a digital wallet, as that’s the safest way to hold your cryptocurrency. Your cryptocurrency wallet doesn’t actually “store” money like a traditional wallet; rather, it stores passcodes, known as keys, that allow you to send and receive digital currency to and from the wallet. 

    Wallets come in two forms: hot and cold. A “hot” wallet stores your cryptocurrency in a location that’s connected to the internet—exchange-based wallets, desktop wallets, and mobile wallets. Because they’re connected to the internet, hot wallets are the most convenient, but also the most vulnerable to hacking. 

    A “cold” wallet, conversely, stores your cryptocurrency in a location that’s completely offline. Ironically, the most secure type of wallet for storing digital currency is a cold “paper” wallet. Paper wallets involve printing out your keys and storing them in a secure location. While paper wallets are the most secure option, if you lose the codes, it’s the same as losing paper currency—meaning there’s no way to recover your investment. 

    But no matter what kind of wallet your loved one keeps their crypto in, anyone with the “key” to that wallet can access and steal the funds – no hacking required. 

    How the Scam Works

    To gain access to your wallet, scammers will lure you to give them your wallet’s key by pretending to be representatives of a cryptocurrency company like Bitcoin or Coinbase, or by portraying themselves as a crypto broker. Once the scammer has your keys, your cryptocurrency is completely vulnerable, even if it’s kept in a “cold” offline wallet. 

    With the keys, the scammer can move your crypto out of your wallet and disappear with it forever, and since the cryptocurrency market isn’t attached to the banking system, there’s no way to recover cryptocurrency once it’s stolen. 

    To help protect your parents from these scams, talk to them about the importance of never, ever sharing their wallet keys with anyone besides you and any other trusted family members. This is essential to keep your parents’ crypto investments safe.

    In all cases, whether your loved ones have crypto in a hot wallet, paper wallet, or directly in a crypto exchange, make sure they’ve given you the details of where their crypto is stored and how to access it in the event they’re incapacitated or die. Otherwise, it’s completely lost. 

    If you don’t know how to find and access your parent’s cryptocurrency in an emergency or don’t know how best to plan for your own crypto, please talk with us so we can guide you on how to include your crypto information in your estate plan.

    Helping You Protect the Ones You Love

    Your parents’ financial security is a priority that demands proactive measures, especially in the face of emerging scams that exploit their vulnerability. By remaining vigilant and arming yourself with knowledge of these scams, you can effectively shield your family from falling prey to these fraudsters. 

    But remember, communication is key. Talk openly with your parents about these potential risks, and encourage them to reach out to you or a trusted professional before making any financial decisions. 

    We’re here to guide you through the intricacies of safeguarding your family’s financial future and can make it even easier to protect your parents by helping them establish estate planning tools to record and pass on digital assets like crypto, powers of attorney to help manage their assets, and trusts to protect everything they love for years to come.

    To learn how we can help you protect your parents from these scams, call us today at (650) 600-1735 and stay tuned for the next installment of our series, where we’ll dive into two more financial scams you and your senior parents need to know about.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

  • Your Rights as the Parent of a Young Adult – What You Need to Know When a Medical Crisis Hits

    Your Rights as the Parent of a Young Adult – What You Need to Know When a Medical Crisis Hits

    As a parent, you’re quite accustomed to managing your children’s legal and medical affairs, as circumstances require. If your child requires urgent medical attention while away from you, a simple phone call authorizing care can do the trick. But what happens when those “children” turn 18, now adults in the eyes of the law, and need urgent medical attention far from home?

    The simple fact is that the day your child turns 18, he or she becomes an adult and has the legal rights of an adult. This means that you lose your prior held rights to make medical and financial decisions for your child unless your child executes legal documents giving you those rights back. Without the proper legal documents, accessing medical information and even being informed about your adult child’s medical condition can be difficult and in some cases, impossible.

    When sending kids off to college, it’s crucial to consider the legal implications of an accident or medical emergency on your ability to stay informed and participate in important decision-making for your young adult child. Medical professionals are responsible for following the Privacy Rule of the Health Insurance Portability and Accountability Act (HIPAA), which ensures medical privacy protection for all adults. Once your child turns 18, they are (from a legal perspective) no more attached to you than a stranger, making communication about medical issues is tricky if your child is incapacitated and not able to grant permission on their own.

    In most states, these three legal documents can make all the difference when a medical crisis strikes and your young adult child is far from home. When utilized together, they can ensure a parent or trusted adult be kept in the loop about care and treatment when a child over the age of 18 experiences a medical event while they’re away at college, traveling, or living far from home. As with most legal documents, the law varies from state to state, so be sure to seek out the counsel with us to determine which forms suit your situation best.

    HIPAA

    Essentially like a permission slip, this authorization allows your adult child to specify who is allowed access to their personal medical information. Specific information can be specifically withheld, such as drug use, sexual activity, and mental health issues so that additional privacy can be protected if desired.

    Medical Power Of Attorney

    Designates an agent to make medical decisions for the young adult. This could be you, as the parent, or another trusted adult. Each state has different laws governing medical power of attorney, requiring different forms. Be sure to check with us to be sure you’re following the laws of your state and the state where your child resides.

    Durable Financial Power Of Attorney

    Allows the parent or another trusted adult to take care of personal business if the adult child cannot do so. This form would allow the parent to take care of such important tasks such as signing tax returns, paying bills, and accessing bank accounts for the incapacitated adult child. A durable power of attorney is powerful and gives broad access to sensitive financial and legal decision-making and should only be given to a trusted relative or friend.

    The milestones come quickly once children graduate high school and enter the big, wide world away from home. As your family navigates these significant rites of passage, consult us to determine the steps necessary to ensure excellent communication and peace of mind when a medical emergency arises. Consider including your young adult children in the process. We’re here to help your family establish the legal and medical protections needed to live your desired lives. Contact us today to schedule your Family Wealth Planning Session for your family and get the right documents in place for your kids.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

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