• 21
  • July
    2011

After making it to retirement, finances and the risk of losing your money should not be one of your concerns. A study by the University of Miami, however, has shown that as seniors age, they are less likely to make sound investments. After the age of 70, seniors' ability to invest sharply declines. There is also an increasing likelihood that seniors will succumb to a financial scam.

An easy way to ensure that you and your money are safe is to set up a living trust. Living trusts manage your money and your assets. They allow for an independent adult or a bank to double check or inquire into an investment opportunity before committing any funds. This second line of defense provides seniors with greater security.

A living trust is established when a person turns over his or her assets to whomever is going to manage the trust, or the trustee. The trustee will then determine how to invest or protect the money. There are some fees associated with setting up a trust, but few people have any complaints about them. If you do have any complaints, however, a living trust can be revoked and your money and assets can be returned.

Living trusts can also be formed to ensure your assets are properly distributed after your death.

If a senior uses a living trust, especially in conjunction with an estate plan and a financial adviser, his or her money should be safe from scam artists and poor investments. Finally, working with a knowledgeable attorney will ensure that all his or her careful planning will not fall apart in a will contest or in probate court.

Source: The Boston Globe, "Seniors should be cautious about finances when facing the challenges of aging," Dave Carpenter, 09 July 2011