Tech-Savvy Seniors- Who Can Access Your Online Accounts When You No Longer Can?

Published: Fri, 01/04/13



Evan Farr's Elder Law and Estate Planning News

Tech-Savvy Seniors- Who Can Access Your Online Accounts When You No Longer Can?

Dear ,

Genevieve is a woman ahead of her time. Although she is now 85, she has been working with computers for more than 25 years. She was the first in her family to get a laptop, send emails, sign up for Facebook and Twitter, and last year, she bought herself an iPad. She does her banking and her brokerage online, and has gone paperless whenever a service provider offered the option.

Recently, she had a stroke. She gave her daughter Melissa a General Power of Attorney a few years ago. For Melissa to do her job of paying Genevieve's bills and keeping her finances together, she needs to access her computer and her accounts, but she did not give Melissa her passwords. Could Melissa use the Power of Attorney to call Genevieve's bank, broker, and even Google for her Gmail account password?

The answer in most cases is YES. A General Power of Attorney (POA) is an essential tool in the event that, due to age, illness, or injury, you are unable to carry on your legal and financial affairs. There is nothing in any of the VA statutes relating to passwords, but here at the Fairfax Elder Law Firm of Evan H. Farr, P.C. we always include language that expands the POA to cover ever-evolving real world experiences, including access to online banking, to email or to digital photos she may have stored online.

Here are some examples of items that can be included in a POA

access to online bank and brokerage accounts
passwords for social networking sites (like Facebook. Linkedin, Twitter or Google+)
log-in information for email servers (like Gmail, Yahoo, Live, Hotmail, etc.)
access to commercial services for which the principal may be registered (such as Netflix, Amazon, and thousands of other online stores)
passwords for cloud servers where data is stored, digital images and other files (for example Dropbox, Google drive or SkyDrive)
pin numbers for smartphones, like an android phone or iPhone, which may store calendars, contact lists and personal files the agent needs to access.

At the same time the tech-savvy senior (known as the principal) signs the specialized POA granting access, the principal should create a master password list. It can be compiled in Word or Excel, both of which allow the maker to password protect the file. Or it can be created in a special software program designed for storing passwords, such as KeePass or LastPass, both of which are free. The agent must then be informed of the list's location and how to access the list.

Using our example, what should Melissa do if her POA does not include specialized language and there is no master password list? First, she could ask her mother for clues if she is well enough to communicate. Second, she could go to her bank personally with the POA in hand to report that you are her agent. Her past records may be online, but you can still access them in the old-fashioned way with the bank's help.

For national sites like Gmail (so you can check email and respond to important communications) contact the service provider. Each company has a specific privacy policy (usually posted on their website) that may allow or disallow access.

For more information about POA's, visit The Law Firm of Evan H. Farr website. To make an appointment for a free consultation, call 703-691-1888.

Happy "Celebrate Life Week"!

"Celebrate Life Week" is about promoting positive health and well-being. This week and in the new year, people are encouraged to take proactive steps to focus on themselves, their health, and celebrating their lives and the lives of those they care about.

Peace of mind is a big component of eliminating stress and fully celebrating life. One of their first steps to gaining peace of mind is planning for the protections you want in your future. To do so, consult a Certified Elder Law Attorney, such as Evan Farr at the Fairfax Elder Law Firm of Evan H. Farr, P.C. for your estate planning and elder law needs. Read the entire blog post on our Everything Elder Law Blog.

Upcoming Events

Saturday, January 12: Living Trust Plus Seminar: How to Protect Your Assets from the Expenses of Probate and Long Term Care

Click to RSVP for this event or call 703-691-1888.

-Learn how to protect your assets and obtain valuable Medicaid and Veterans benefits to pay for long-term care.

-Learn what the most important estate planning document is, and find out whether yours is up-to-date!

-Find out if your Will is sufficient to meet your needs, or if a Trust is a better instrument for you!

-Find out how you can protect your assets from lawsuits, divorce, and long-term care creditors!

January 14:

Financial Wellness Event

Click to RSVP for this event or call 703-691-1888.

January is Financial Wellness Month. Join us for an event focused on Senior Financial Wellness and enjoy some fun refreshments!

At our Senior Financial Wellness event, we will discuss: preparing for the unexpected (including ensuring you have a proper power of attorney & living trust in place); ways to protect your life savings from creditor attack and to avoid falling victim to fraud; and ways to plan, track and manage your money, both now and in the future.

This event, hosted by The Law Firm of Evan H. Farr, P.C. is for clients and their friends who would like to learn more about Senior Financial Wellness. Join us for this informative session on January 14 and enjoy fun refreshments while learning how to get a jump on some of those financial New Year's resolutions you'll be making!!

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Upcoming Events

All events are at The Law Firm of Evan H. Farr, P.C., 10640 Main Street, Suite 200, Fairfax, VA 22030. RSVP today! We hope to see you there. Find out more details.

Saturday, January 12: Living Trust Plus Seminar: How to Protect Your Assets from the Expenses of Probate and Long Term Care

RSVP

Monday, January 14:

Senior Financial Wellness Event

RSVP

Critter Corner Featuring Chancellor Farr

Chancellor's Bio:

Chancellor is a cuddly, smiley Westie with lots of Westitude and is the beloved canine belonging to Evan and Jeannie Farr. Chancellor used to entertain our clients at the Farr Law Firm regularly, but is now blind in one eye and prefers to stay at home chasing squirrels all day.

Dear Chancellor,

I heard the recent news about the "Fiscal Cliff" and the compromise congress approved to avoid it. I am particularly concerned with how the changes will affect estate taxes. You look really smart (and cool) in those glasses, so I figured you might have the answer to my questions. Please help.

Thanks!
Cliff A. Verted
------------

Dear Cliff,

You asked the right Westie. My owner, Evan Farr, started working on an FAQ about this very topic as soon as he heard about the changes. Below is some of the information he gathered in his research.

Q: Will there be any change to estate taxes?
A: The amount that is exempted from estate taxes will remain the same as it has been for the past two years, and the maximum tax rate will rise by 5 %.

Q: How will inflation affect the estate tax exemption?
A: The American Taxpayer Relief Act of 2012 that was signed into law by Obama set the estate tax exemption at 5.12 million for an individual and $10.24 million for a couple. Read the Washington Post article.

Q: Under the new law, how much can you transfer tax-free during life or at death?
A: Under the 2012 tax law, we can each transfer up to $5.12 million tax-free during life or at death. The new 2013 tax law does not change how much you can pass tax-free.

Q: Do spouses have to pay the tax when they inherit from each other?
A: The new law doesn't change this either. There is an unlimited deduction from estate and gift tax that postpones the tax on assets inherited from each other until the second spouse dies.

Q: How does this relate to lifetime gifts?
A: The lifetime gift tax exclusion and the estate tax exclusion are expressed as a total amount - currently $5.12 million per person. If you exceed the limit, you or your heirs will owe tax of up to 40%. The IRS expects you to keep a running tally and report these gifts so it will know how much has already been used up when you die.

Q: Are there lifetime gifts that don't count?
A: We can each give another person $14,000 per year without it counting against the lifetime exemption. Spouses can combine this annual exclusion to double the size of the gift. This amount does NOT count against the $5.12 million lifetime exclusion discussed above. However, always beware of making lifetime gifts if you are over the age of 65 -- read the Perils of Gifting webpage on the Elder Law Firm of Evan H. Farr, P.C. website for more details.

Q: Should you update your documents?
A: Nearly 2.5 million Americans die each year, and many haven't signed the basic documents needed to protect their loved ones, so everyone should have a plan in place. You can make an appointment for a free consultation with The Law Firm of Evan H. Farr, P.C. at 703-691-1888. If you have already taken the important step of planning with the Elder Law Firm of Evan H. Farr, P.C., with all of the changes that have taken place within the past five years, you should revisit your plan this year.

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