Quote: “While 68% of older investors believe that a stranger would be the likely perpetrator of financial exploitation against them, the reality is starkly different, according to Wells Fargo & Co., which released the results of its elder needs survey on Tuesday morning. Two-thirds of financial crimes against the elderly are committed by those who are closest to the victims, the survey found.”
Heirs often “help” parents by impoverishing them so as to collect Medicaid to pay for their long term care. They urge parents to give them the house long before care may be needed.
Often times the parents leave the homeowners insurance on a home they no longer own. When a claim happens they learn there is no coverage on the house or its contents because it is technically a rental house the occupants do not own.
Then when the parents need care, and apply for Medicaid, they learn that due to the woefully inadequate compensation to the care providers by Medicaid, they have a very difficult time finding a facility to accept them.
Later, when the children sell that house, they learn their cost basis was essentially zero and the entire selling price becomes taxable income to them.
I do not wish to have to live in a welfare facility that is losing money on my care, do you?
Do your parents? Do they realize the difficulty in gaining entrance when already qualified for Medicaid? When I travel, I do not stay at Motel 6, and I would never want to have to live in one either.
If the parents want to give some of their wealth to their children at the time care is needed, there is a way to do this through irrevocable burial trusts. This can move money to family without creating any penalty periods for Medicaid and still have access to the place they want to receive care. This is all part of the Long Term Care planning we do at www.TheLongTermCareGuy.com. Give us a call at (920) 884-3030 and let’s work out a plan for you and yours.