This post was originally published in September 2019. It has since been updated with new information and was most recently updated on November 15, 2020.
You have spent your life working hard to build up assets that you plan to use for your retirement and care and to pass along to loved ones. Whether it is for yourself or a loved one, you may find yourself facing the decision about entering a nursing home.
The cost of nursing home care is expensive, and it can quickly drain any savings you have. One fear, however, is that you may lose the assets you have built over your lifetime – putting everyone in your family at risk.
It is a common misconception that the nursing home itself seizes your assets. In reality, it is Medicaid that would look to your assets to pay for any nursing home care you need before allowing you to use Medicaid’s benefits as payment.
Contact Gladstein Law Firm, PLLC
online or by calling 502-791-9000.
Understanding the Financial Challenges of Entering a Nursing Home
Nursing homes are designed to help aging or disabled loved ones receive the care they need and take the burden of care off family members. The cost, however, is extravagant. Most nursing homes can cost a family $50,000 to over $100,000 per year – depending on the state and the amenities of that nursing home.
Medicare, while available for nursing home coverage, doesn’t cover long-term stays in these facilities. Instead, it is based on medical necessity and short-term coverage. Even before you can apply for Medicaid, you must first look at your assets and income. Some of those assets might be at risk if you apply for Medicaid before protecting them.
What about Medicare?
Medicare doesn’t pay for long-term nursing home care. Instead, Medicare only offers limited benefits for skilled nursing for short periods – such as recovering from an injury or illness.
Contact Gladstein Law Firm, PLLC
online or by calling 502-791-9000.
What Happens to Assets?
To protect your assets before you apply for Medicaid, you will want to transfer those assets to the parties you intend to give them to upon death. However, there is a 60-month lookback, which means any assets you transfer in that period are still considered yours. So, you would have to transfer these out of your name long before you apply.
The Unspoken Risk for Assets – Financial Abuse in Nursing Homes
While you might not lose your assets to a nursing home as a method for payment, there is one common type of abuse going on in nursing homes today that do put an individual’s assets and income at risk: financial abuse.
When people think of nursing home abuse, they think about physical abuse, neglect, or even emotional trauma. However, financial abuse is just as prominent and often goes undetected. By the time family members realize their loved one is a victim, they can lose their savings, investments, and precious assets.
Financial Abuse in Nursing Homes Is Common
As the number of dual-income households increases, fewer families can provide aging loved ones with the care they need. Understandably, this has led to an increase in the rate of nursing home admissions, both in Kentucky and across the United States. Unfortunately, the instances of financial abuse in nursing homes are also increasing at an alarming rate.
Elder abuse is shockingly common in the United States, with one in ten seniors reporting abuse of some type. However, financial abuse and exploitation are the most common types of elder abuse, accounting for between 12 and 35 percent of all reports. According to some studies, over four percent of all older Americans report experiencing financial abuse at some point in their life.
It is also important to understand that elder financial abuse is also underreported. Often, nursing home residents may not realize that they were victimized or fear that family members will not believe them. However, financial abuse is real, and the collective economic impact it has is tremendous. In fact, according to the National Council on Aging, the annual cost of financial abuse committed against older Americans ranges between $2.9 billion and $36.5 billion.
The Types of Financial Exploitation and Abuse of Seniors in Nursing Homes
Sadly, seniors can be exploited and tricked into giving away assets by nursing home administrators and caretakers – those they trust. Anyone that has access to a senior’s finances can do this, including friends and family as well.
Some common examples of nursing home financial abuse can include:
- Cashing a senior’s checks without authorization or permission
- Forging checks in the victim’s name
- Stealing their money or possessions and selling them for profit
- Coercing a senior resident into giving them money, signing a contract, or even signing over a financial power of attorney
- Abusing a power of attorney already in place
Who Typically Commits Financial Abuse in Nursing Homes?
Financial abuse can happen from anyone who interacts with the victim daily, including caretakers. In some cases, nursing home administrators, who have a financial power of attorney in order to pay for expenses in the nursing home for that patient specifically, abuse that power by stealing from their residents.
Is Your Loved One a Victim?
If you suspect financial abuse or exploitation of your loved one, you may not notice the signs until it is too late. Some indicators that your loved one could be taken advantage of include:
- Transfers of money or assets into a non-family member name without explanation
- Changes in a loved one’s will or power of attorney documents
- Living conditions that drop below what your loved one can afford
- Bank accounts with significant withdrawals
- Checks being written to a specific caregiver frequently
- Belongings missing from a loved ones room
- A loved one that stops talking about finances with family and even seems ashamed to bring it up
- New signers added to a loved one’s bank account or credit card accounts
- Changes in how your loved one’s signature looks on financial and legal documents
Can You Prevent Financial Abuse when Your Loved One Is in a Nursing Home?
Yes, there are steps you can take to protect your loved one and keep them from becoming a victim of financial abuse. Family members are indeed the first line of defense. And the more proactive you are, the easier it will be to protect your loved one.
Some things you can do include:
- Doing reviews of your loved one’s checking account, bank statements, and credit card statements to look for any unauthorized or unusual activity
- Reviewing a nursing home’s references and reviews before contracting with them
- Using automatic bill pay for payments for nursing home expenses and not allowing the nursing home to control payments manually
- Handling your loved one’s finances and having a power of attorney in place so that they cannot give power of attorney to an unauthorized party
Do You Suspect Financial Abuse in Your Family Member’s Nursing Home?
If you suspect that your loved one is the victim of financial abuse, you need to take steps to protect them. You not only have the right to hold nursing homes accountable, but you can request compensation for the pain and suffering your loved one experienced and hopefully get the funds that were stolen back, so that your loved one is not left without any assets or money.
To explore your legal rights, contact a nursing home abuse attorney like attorney Seth Gladstein at the Gladstein Law Firm, PLLC.
Schedule a free case evaluation now at 502-791-9000 or request more information online.
Contact Gladstein Law Firm, PLLC
online or by calling 502-791-9000.
