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fraud

Nov 23
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FRAUD: The “F” Word of Estate Planning

By Uncategorized

Fraud is a label to run from – not walk from

As an attorney that practices in areas of law that have both local and national scope – reading and reviewing scholarly writings and recent case decisions is critical to staying current. From these readings, we come to learn and respect the work done by other attorneys and how they are best representing their clients and their interest.

One such article came across my desk entitled “Medicaid Planning Technique Didn’t Work Exactly as Intended” a link to the full article can be found HERE.

The article examines what could be best described as a case study of one attorneys recommendations to a client who was retained to assist the family with Medicaid planning and qualification. As the title infers, the plan did not work out as explained and the clients goals and objectives were not carried out with the suggested plan proposed and enacted by the attorney. Fraud ruins any thought of a clever estate plan – and once that genie is let out of the bottle – it is hard to get it back in.

If it seems too good to be true – it probably is

The case is a lesson for both client and attorney. Just because you can do something – does not always mean you should. Deciding on an estate plan with the goal of qualifying for Medicaid benefits is something that must weigh all of the factors and rules. Knowledge of family dynamic, conflicts, tensions, and history are as important as understanding the rules of Medicaid eligibility, assets and income.

Fraud is a badge that does not wash off easily. Having to defend yourself or others from being accused of absconding with the assets of an elderly loved one is not something anyone wants to envision. There are legal consequences – which translate into strained relationships and possibly property and certainly financial penalties with the ultimate loss of liberty.

The author of the article makes the following suggestions when selecting an elder law attorney to work with:

  1. Be careful about selecting your lawyer. Do you want someone who really knows estate planning and/or Medicaid planning? Check out their reputation, their online information, and recommendations from friends and colleagues. Did you meet the lawyer at a promotional seminar at the public library or a local restaurant? Make sure you’re not being sold something you don’t really want or need.
  2. Does a particular Medicaid planning technique sound almost too good to be true? Be suspicious and ask for input from others.
  3. When a lawyer agrees to meet with you and your family member together, that suggests something troublesome. We are supposed to represent just one person, not a whole family. Recognize that your interests and those of your family member might differ, and respect the lawyer’s efforts to maintain that separation.
  4. Recognize that even though an idea — and particularly a Medicaid planning technique — might work, it might also have unintended secondary effects.

 

Aug 22
Love0

Fraud: Targeting the Elderly

By Uncategorized

Schemes Targeting Elderly Not Limited to Tax-Related Scams

While tax-related fraud schemes aimed at seniors have been in the news, financial schemes targeting the elderly aren’t restricted to those involving Internal Revenue Service impersonation calls or tax refund fraud.Elder Fraud

The U.S. Department of Justice has filed a civil complaint alleging multiple international mail fraud schemes that have defrauded elderly and vulnerable U.S. victims out of tens of millions of dollars. According to the complaint, U.S. residents received fraudulent direct mail solicitations that falsely claimed that individual victims had won, or would soon win cash, prizes or other bonus. The solicitations appeared to be personalized even though they were really form letters mailed to hundreds of thousands of potential victims.

The solicitations typically matched one of three types:

  • False claims that the victim is the winner of a lottery or sweepstakes and will receive winnings if they pay a processing fee;
  • False claims that the victim has won a large sum of money and should purchase a “guaranteed,” “secret” method for winning lotteries and other games of chance; or
  • Solicitations allegedly from a psychic who has “seen” the victim winning large sums of money through the lottery or other contest which will only happen if with the purchase of various supernatural and divinatory objects or services.

fraud-alertIn some instances, the solicitations claim that the recipient has already been confirmed the winner of a prize in bold, prominent lettering, but then explain in smaller text that the prize drawing has not yet taken place or that there is no prize drawing. Potential prizes touted were said to be in excess of $20,000 and included cash, checks, amounts held in trust, and cars. DOJ estimates that more than half a million victims responded, netting the defendants $18 million.

 

Elder Abuse from Children – the Opioid Crisis

Reports of suspected elder abuse in Massachusetts have surged over the past five years, according to state figures — a troubling increase that law enforcement and elder advocates say is fueled in part by the opioid crisis and addicted adult children exploiting parents and other relatives. Since 2011, abuse reports have climbed 37 percent, with more than 1,000 additional cases reported each of the past five years to protective services offices. The Executive Office of Elder Affairs, the agency that tracks and investigates abuse, recorded nearly 25,000 cases last year, but the state’s numbers do not delineate how many involved opioids. More adult children addicted to opioids are moving back in with their elderly parents, Middlesex District Attorney Marian T. Ryan said. Retired parents, with their monthly Social Security and pension checks, become easy targets for financial, physical, and emotional abuse.

Protecting the Elderly from Fraud

Want to protect your elderly loved one? While people certainly have the right to choose where they spend their money, we don’t want our loved ones prayed upon and taken advantage of. Keep in close contact with your loved one.  Watch for any changes in spending or behaviors. Review mail received for any solicitations that are seeking donations of payments. If irregularities are noted, inquire into spending habits. If possible, review banking and financial records.

Consider executing a Durable General Power of Attorney to address any competency issues. A fully considered and executed estate plan will often minimize the chance that the Elderly will be targeted by fraudulent activity.

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