WARNING! Living Trust Scams Targeting our Seniors

Don't loose Medicaid Benefits because of a Living
Trust!1. the CS (community spouse)
My grandmother recently responded to a post card2. by a child who is younger than age 21, blind or
advertising piece received in the mail. The companydisabled
that sent the post card eluded that they were3. by a child who is age 65 or older and who has a
'approved' by AARP and made the claim "The Choicecountable income not exceeding the need standard for
is Yours: Sacrifice Your Assets to the State orthe Temporary Assistance for Needy Families
Protect Your Loved Ones."4. by a sibling who has a verified equity interest in the
Grandma did not think to call me, or anyone else in thehome and who was residing in the home for at lest
family. She thought this post card was expecting herone year immediately before the date the individual
response, and so she called and set an appointmentwas admitted to the medical institution.
for the company's representative to visit her at home.However, if you assign the deed of your home to a
This representative created 'common ground' almostLiving Trust, you loose this exemption and your home
immediately with my grandma. One quick look aroundis now considered a 'Countable Resource'.
her home and you see photographs and otherMany seniors will find themselves in need of Medicaid
evidence of a very family-oriented, religious woman.assistance to help pay for health care services.
Grandma was immediately put at ease at the friendly,Medicaid, once an 'entitlement program' available to
self described 'Christian' who claimed to share thethose that met the age and income criteria, is now a
same family values as grandma.completely different program allowing the state to
Once trust was created, he then began to educatecollect the Medicaid reimbursement from your estate.
my grandmother on the 'horrors' of probate and the,The federal guidelines and the individual state guidelines
as he put it, 'untrue legal advice attorneys provide whileare not always the exact same guidelines. Each state
attempting to create more revenue for themselves.'has been provided a great deal of flexibility in how
This company is selling Living Trusts to olderthey interpret and govern Medicaid. Ohio happens to
unsuspecting elders, charging $800 to guarantee thatbe one of the worst states.
their estate will not go through probate, guarantee thatIn fact, in a recent article published in Forbes Magazine,
the final wishes outlined in the Will are carried outentitled 'Best Places to Die'', Ohio ranked 49 out of fifty
properly and claimed this Living Trust will savefor this and other reasons. See
'thousands of dollars'.Best Places to Die
Although an attorney owns this company, the localThe Probate Myth:
representatives are not attorneys. They are salesIf you are like my grandma, with less than a total of
people, selling one product for a commission. They are$200,000 in assets, chances are a Living Trust is not a
not there to serve the elder's best interests. A Livingreasonable vehicle to purchase simply to avoid
Trust is not a 'one-size-fits-all'. In fact, there areprobate. We have learned that as long as the deed,
varieties of Trusts available with logical and usefulthe bank accounts, the insurance policies and so forth
applications, however, not every senior is in need ofare written with the proper legal wording of
such a legal document.'survivorship' these assets will seamlessly pass to the
When grandma decided to call me to ask my opinion, Isurviving spouse, without probate.
did what most consumers would do. I checked theJust as the IRS has complicated tax returns to the
Better Business Bureau and found no complaints. I thenpoint an average citizen needs to pay for assistance in
went to the AARP site, which this firm claimed hadorder to file, the government has created the same
endorsed their company.quagmire with Medicare and Medicaid issues.
Sure enough, this company is listed on the AARP siteIn conclusion:
for a fee. I found this company by going to Member- Trusts have solid purposes, however, please speak
Services and clicking on 'Financial Services' and thenwith someone who is well versed and educated on
did a keyword search for the company. MembersMedicare and Medicaid issues before pursuing.
Financial Services- Not having a trust does not mean your estate will
I had to really dig into this site to find the AARPdefinitely go through Probate court.
disclaimer. Most consumers would not have thought to- Do not assume you know how Medicare and
do this, in fact, at first glance; it appeared as though thisMedicaid works. Either speak with a professional that
company was 'endorsed' by AARP. I personally, foundspecializes in elder planningissues privately, or attend
this to be a disappointment considering the fact thatone of the many workshops to self-educate yourself.
AARP wants to be considered an 'authority' on elder- Seniors, please do not invite a sales representative in
care issues.to your home while you are alone. You want someone
I found the disclaimer in an article on Estate Planningyou trust (an adult child or friend) to be in the home
Articlesduring this sales presentation. This is not a 'dig'. You've
It says, in the middle of the article, AARP does not sellbeen around the block and are more savvy than most
or endorse any living trust products. AARP does notof us and you have the right to do what you want.
work cooperatively with any company that sells orJust be aware that there are people out there that
promotes living trust documents. AARP does not giveknow how to manipulate your trust. In fact, their sales
such companies the names or addresses of itstraining teaches them 'how to' do just that.
members.- Never feel pressured to 'do it right now'. All
Dispelling Mythsprofessional reputable services expect you to consider
Deciding on whether or not a Trust is in your bestyour options.
interest is best left to an elder-law attorney or an- Never give your birth date, social security number,
eldercare financial planner. A Senior Approved service,bank account numbers and so forth to anyone over
available in Ohio, that can help personalize Medicaidthe telephone or to a stranger that has come to your
planning is Raymond James Financial Serviceshome.
I have learned a few pointers:- Do not assume that a company with no complaints
Medicare and Medicaid planning varies state by state.registered with the Better Business Bureau equates to
In Ohio, Medicaid does NOT consider your home aan 'approved' service. Anyone with $500 can join the
'Countable Resource', if you meet the following rule:Better Business Bureau.
The Ohio Medicaid rule is: "The home and contiguous- Get all the facts before you make a decision. Ask a
land is exempt as long as it is occupied by thelot of questions. Please, be careful.
Medicaid recipient or byStop guessing! Select a Senior Approved Service!