What would you do

[ILLMAS]

Would you reach out to a TP children if you feel the TP is forgetful and/or someone might take advantage of them since their memory is fading?

 

[Lee B]

That's a touchy situation. Do you have a good relationship with any of the children?

I have several still active business clients who are now in their seventies.

They seem to be getting a bit more forgetful.

What I do is make an effort to present things as clearly as possible.

Then I follow up with a detailed step by step email.

However these are all Write Up/Payroll clients that I deal with on a monthly basis.

[Possi]

Well, that's a loaded question. Most of my clients are families, so it would be easy for me to talk to one of their family members. 

But, what if you honestly don't know that person or their family very well? I'd say no, because it might be that family member who takes advantage. 

[Lynn EA USTCP in Louisiana]

One set of clients, TP and SP, both in their late 80's.  TP has alzheimers and is now showing signs of paranoia, enhanced by his extreme hearing loss.  He has hearing aids but often removes them, so I communicate with him via notes.  While I offered to go to their house to collect their tax info I am now hesitant to do so due to his paranoia and the fact that he has guns in the home.  SP daughter has POA but I am unaware if it has been invoked. 

[ILLMAS]

Thanks everyone for your input.

[Catherine]

You need a Section 7216 Disclosure Authorization to talk to anyone else about their taxes. It's actually a pretty fine line to tread with our elderly clients. I try to have them come in (or meet me with) a family member - use an excuse, such as "making sure someone understands new technology" or something they'll accept. Once the client has freely spoken to you with that family member present, you can also ask about "should there be trouble in the future, may I speak to X?" to start the discussion. 

[ILLMAS]

15 hours ago, Catherine said:

You need a Section 7216 Disclosure Authorization to talk to anyone else about their taxes. It's actually a pretty fine line to tread with our elderly clients. I try to have them come in (or meet me with) a family member - use an excuse, such as "making sure someone understands new technology" or something they'll accept. Once the client has freely spoken to you with that family member present, you can also ask about "should there be trouble in the future, may I speak to X?" to start the discussion. 

This is great information, thanks.  

[Medlin Software, Dennis]

Maybe "Do you have a fiduciary, family member, or other person you would like to get copies of any documents"?  Some will already have their affairs in order and a plan in place, some may not and you might even trigger them to consider their final affairs.

[kathyc2]

You don't have to disclose any financial info to let someone know.  If you have a relationship with children or someone else close to them, it can be as simple as saying something like "I noticed your Mom isn't as organized with her information as she used to be."

[Lee B]

And of course, it could all blow up in your face if the person you confide in repeats what you said to your client.

Some people with dementia get frustrated easily and are quick to get angry.

[TexTaxToo]

Brokerages are now required to ask for a "trusted contact" when an account is opened.  (It is not mandatory that the client provide one.)

https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-30

[Catherine]

On 1/27/2022 at 8:38 PM, kathyc2 said:

You don't have to disclose any financial info to let someone know.  If you have a relationship with children or someone else close to them, it can be as simple as saying something like "I noticed your Mom isn't as organized with her information as she used to be."

Technically,  you are not allowed even to admit the  person is your client without a signed/dated Section 7216 Disclosure Authorization. You also have to be careful *who* you talk to for other reasons. One of my elderly clients has 3 kids; 1 close, 1 relatively nearby, and 1 several states away.  The one who's close also has a history of verbal abuse! It's the one several states away who is my contact (with S7216 etc). The relatively nearby one just has no head for numbers, but at least is not verbally abusive.  Did I know any of this before the S7216?  Nope. Just names/addresses that were needed for a gift return some years earlier.

[michaelmars]

HI SON/DAUGHTER,  My name is Mike and haven't heard from your parent in a while.  We usually talk every once in a while.  Just wondering if they are ok?  

 

no need to mention taxes, business relationship, etc.

[Catherine]

On 2/3/2022 at 1:45 PM, michaelmars said:

HI SON/DAUGHTER,  My name is Mike and haven't heard from your parent in a while.  We usually talk every once in a while.  Just wondering if they are ok?  

 

no need to mention taxes, business relationship, etc.

There's the hurdle. If you word it loosely enough, the kid may think it's some sort of scam and refuse to answer. You could try!  Allude to some longer term connection? "We usually chat this time of year, but s/he has not answered my letter."