We hear horror stories of nurses and aides murdering seniors by giving them too much medication or basic neglect (like Hollywood Hills after Irma and some VA nursing homes).
We don’t hear the day-to-day stories of seniors who have lost some cognitive function and sign contracts for ridiculous services such as solar power or computer upgrades that they don’t need and won’t use.
One 80-year-old client was scammed by two solar companies. A sales representative called and told her how she would be contributing to the environment then sent her a contract to sign. The contract gave the company the right to lien the house in event of a default. Further, the 20-year financing at 4 percent would be added to her property tax bill. The minute the contract was signed the company obtained a permit.
The second company used the same method then filed and received a permit for solar panels at the exact same address. The county never noticed. Luckily, her niece stepped in and canceled both permits and called me. We had to settle with one company and threaten the other for them to leave her alone.
Another client was exploited by a lawyer. This attorney drafted an irrevocable trust. An irrevocable trust means that you sign over all your assets to the trust and can no longer access them. A trustee is chosen to manage the trust. These trusts are used in a minority of cases in order to allow people with some assets to qualify for medicaid. To qualify for medicaid one must be at the “poverty level.” The idea is if your assets are in an irrevocable trust you don’t own anything and therefore qualify for government assistance.
In this case, the attorney drafted an irrevocable trust, made himself the “trust protector”and the two daughters trustees. However, the trust protector has the right to fire the trustees; the opposite is not true.
Now, here is the rub, this couple makes $5,000 monthly with social security and pension benefits…for life! That amounts to $60,000 annually. They will never qualify for medicaid. Further, this attorney also sold them a $30,000 funeral policy and an annuity. That is a conflict of interest. It cost this couple much more in legal fees to undo what this unscrupulous attorney had done.
Bottom line is you have to be vigilant. When you begin to worry that your loved one is losing some of their cognition, step in. Here are a few indications:
Forgets their passwords
Forgets where they wrote down their password
Forgets to pay bills
It’s true we all have these issues from time to time but if its more often than not…it’s time to take note and act.
Frances Reaves, Esq., a graduate of the University of Miami Law School, spent 10 years as a litigator/lobbyist. Today, she Is an accomplished business woman who, when her parents could no longer take care of themselves, learned the ins and outs of senior care (or the lack thereof). She founded Parent Your Parents to assist seniors and their children through the myriad pitfalls and options of “senior care” in the 21st Century. If you have any questions or comments contact Frances at hfrancesr@parentyourparents.com.
