Planners Urge Families to Discuss Parents' Finances as Scams on Over-60s Hit $2.4 Billion
Updated
Updated · CNBC · May 15
Planners Urge Families to Discuss Parents' Finances as Scams on Over-60s Hit $2.4 Billion
1 articles · Updated · CNBC · May 15
$2.4 billion in scams reported by Americans 60 and older last year is pushing financial planners to urge adult children to start low-key talks with aging parents about money management before a crisis.
61.2 million Americans were 65 or older in 2024, up 13% from 2020, and longer life expectancy means more families may need years of financial caregiving while balancing parents' independence against safety concerns.
Experts say the first steps are learning how parents organize accounts, documents, advisers and online logins, then watching for red flags such as scam losses, impulsive spending, unpaid bills or confusion about balances.
Power of attorney is generally the preferred legal tool because it can be activated immediately or after cognitive decline, while banks may also offer convenience accounts and trusts can name an adult child as trustee.
Joint ownership can solve access problems but may expose assets to the child's creditors, trigger sibling disputes and reduce tax benefits such as a full step-up in basis on inherited assets.
Beyond a Power of Attorney, what legal gaps leave your family vulnerable when dealing with agencies like Social Security and the IRS?
You added your name to your parent's bank account to help. Why could this kind act cost your family thousands in taxes?
As AI voice scams surge, what simple family 'safe word' can protect your elderly parents from financial ruin?