Moving a family member into a care home is often an empathetic choice, but one that exposes families to financial risk. Care facility residents are usually targets of scams, usually through exploitative caregivers or deceptive contracts, that drain life savings and jeopardize long-term security. Protecting their assets means being vigilant against exploitation. Here are three important steps to secure your loved one’s assets from scams.
Establish Legal Safeguards Early
The most effective way to protect assets is by legally planning ahead before a crisis arises. Tools such as irrevocable trusts and Medicaid asset protection trusts can avert unauthorized access to funds. For example, putting a home or savings in a trust eliminates the cap on Medicaid eligibility, taking away the incentive for facilities to overcharge families. A power of attorney enables a trustworthy family member to oversee financial matters and challenge questionable transfers or fees.
Timing is crucial. Most legal safeguards, except for long-term care insurance, require advance planning. For example, Medicaid subjects asset transfers to a five-year “look-back” period. Families waiting until a health emergency develops may find their options limited. Consulting an experienced lawyer ensures your loved one’s estate plan complies with state law while guarding against financial exploitation.
Monitor Financial Activity and Facility Billing
Vigilance is key to catching scams early. Check bank statements, credit card statements, and facility invoices on a regular basis for problems. This can be unauthorized charges, duplicate billing, or unusual changes in expenses. For instance, a nursing home can bill for services never rendered, such as specialized therapy sessions or medical equipment, counting on families’ trust in the facility. Some staff members may even threaten residents into “donating” funds or modifying wills under duress.
Seek the assistance of an unbiased third party, like a financial advisor or accountant, to examine records annually. Most banks have alarms for large withdrawals or unusual account activity. Report to facility administrators if you detect anomalies, and refer to regulatory agencies if necessary. Documentation, including dated memos, emails, and photocopies of checks, supports your case in the event of a dispute.
Take Immediate Action if Financial Abuse is Suspected
If you discover evidence of financial exploitation, such as missing funds or unauthorized withdrawals, act fast to stop further damage. First, freeze compromised accounts and report abuse to adult protective services, authorities, and state nursing home regulators. For example, authorities can investigate and void fraudulent contracts if a worker forces your loved one to sign a contract for unwanted services.
Also, consult an attorney specializing in financial fraud or nursing home abuse. Legal action may include civil lawsuits to recover the stolen assets or negotiations for a nursing home settlement to resolve the claims without lengthy litigation. Settlements can provide faster payments with the added advantage of avoiding public trials, which many families prefer to protect their loved ones’ privacy. Update legal safeguards, such as power of attorney documents, to prevent continuous exploitation.
Endnote
Guarding a loved one’s assets from nursing home scams requires timely legal protections, vigilant financial monitoring, and a quick response when red flags appear. Families that stay informed and engaged can prevent exploitation and hold facilities accountable. Financial predators thrive on ambivalence, so knowledge and advocacy are the most effective defense.
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