Some Random Updates for Seniors
As life evolves, so do the changes that impact seniors. Whether it’s about Social Security, Medicare, or new apps making waves, it’s important to stay informed about what’s coming. Here’s what’s new in the world of seniors today:
Social Security COLA Update for 2026
One of the most anticipated updates for seniors is the annual cost-of-living adjustment (COLA) for Social Security. The 2026 COLA is estimated to be 2.7%. While this is positive news, the downside is the expected increase in Medicare Part B premiums, which means a portion of the COLA will likely go toward covering these costs.
Credit Report Update: Medical Debt Rule
In a significant legal update, a federal judge ruled that the Consumer Financial Protection Bureau (CFPB) exceeded its authority with the Medical Debt Rule. This rule aimed to remove unpaid medical debts from credit reports, but the judge’s decision means credit reports will continue to reflect these debts for now.
Cybersecurity Concerns: Medicare Fraud Alert
Cyber criminals are busy. This time, they fraudulently created new Medicare.gov accounts for 103,000 people. The Centers for Medicare & Medicaid have deactivated the impacted accounts and will be sending new Medicare cards and numbers to the beneficiaries.
New Technology for Seniors: The IQ121 App
There is a new app called IQ121 that is garnering some buzz in the senior community. It is a cloud-based app that allows older adults to share important legal and financial documents, photos, and videos with their families.
Key Features of IQ121:
- Cloud-Based Storage for sensitive documents
- Easy sharing of information with loved ones
- Potential for streamlining legal and financial management
As with any app, make sure to perform due diligence before uploading sensitive information to the platform.
Trusts and Fiduciary Duty: A Cautionary Tale
When setting up a family trust, it’s common for people to appoint a family member as the trustee. However, this can sometimes backfire. A recent case out of Ohio highlighted how a son breached his fiduciary duty when he distributed assets from his father’s trust without proper authorization.
Case Details:
- Dad’s family trust: Named his five children as beneficiaries
- Breach of fiduciary duty: Son gave his children a larger share than the deceased daughter’s children
- Court ruling: The son was found to have acted improperly
This case serves as a cautionary tale for those appointing family members as trustees without clear guidelines.
Elder Financial Exploitation: A Disturbing Trend
In Waco, four individuals were arrested on charges related to the financial exploitation and negligent care of a 79-year-old widow. The accused allegedly manipulated the elderly woman for over 10 years, with one even serving as her court-appointed guardian.
This case highlights the importance of vigilance and protection against financial exploitation, especially among vulnerable seniors.
A Family Torn Apart by Inherited Wealth: The Legacy of “Que Sera, Sera”
If you’re a fan of classic Hollywood, you may remember Doris Day singing “Que Sera, Sera” in Hitchcock’s “The Man Who Knew Too Much”. This iconic song has an equally dramatic backstory in the world of inherited wealth.
Family Feud Over Royalties:
- Jay Livingston co-wrote the song and transferred the rights to his trust.
- After he died in 2001, his daughter, Travilyn, sued her over who owned the rights to the royalties.
- Travilyn eventually prevailed, but this situation serves as a cautionary tale of how inherited wealth can tear families apart.
Temporary Provisions in the Big Beautiful Bill (2025-2028)
Several provisions will impact seniors and families over the next few years. Some of these provisions will be temporary, from 2025 through 2028:
- Auto Loan Interest Deduction: Deduct interest on auto loans
- Enhanced Deductions for Senior Citizens: A tax break for seniors
- No Tax on Tips: For tipped workers, tips will not be taxed
- Immediate Deduction for New Manufacturing Facilities: Encouraging investment in manufacturing
From 2026 through 2030, a Medicaid Rural Health Provider Fund will be available, and from 2025 through 2029, the State and Local Tax Deduction will be in place.
Provisions for Children Born Between 2025-2028:
- Federal Contributions to Trump Accounts for Children
2026 and Beyond:
- The 2017 tax cuts will become permanent.
Final Thoughts: What Will Be, Will Be
All of these updates impact seniors, their families, and their financial futures. As the world continues to change, staying informed about legal, financial, and healthcare developments is crucial. Understanding how new laws and provisions may affect you is key to protecting your future.
How These Changes Could Affect You and How Hammerle Morris Can Help
At Hammerle Morris Law Firm, we’re here to help you navigate these changes and ensure you’re fully prepared. From understanding the One Big Beautiful Bill Act to clarifying new estate tax exemptions and healthcare provisions, our team is dedicated to guiding you every step of the way. Don’t wait—take control of your future and schedule a consultation with us today!
Virginia Hammerle is an accredited estate planner and represents clients in estate planning, probate, guardianship, and contested litigation. She may be reached at legaltalktexas@hammerle.com. This blog contains general information only and does not constitute legal advice.
