How to Spot Illegal Nursing Home Debt Collection Tactics and Stop Them in Their Tracks
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With 48 million families supporting someone in long-term care across the United States, all too often long-term care becomes the target for illegal activity that leaves the families who were simply trying to care for their loved one at a loss. However, you don’t have to become a victim.
TAKE TIME TO UNDERSTAND YOUR LOVED ONE’S ADMISSIONS CONTRACT
When securing a long-term care facility for your loved one, you will have to decide whether or not to sign an often lengthy and confusing admission contract. Yet, many caregivers do not understand what they are actually signing, providing the perfect opportunity for a facility to add illegal clauses that families unknowingly agree to.
For example, some admissions contracts include a clause that states a caregiver must pay the resident’s bill in the event that the resident cannot afford to do so. However, clauses like this are generally illegal. Yet, in the event that you unknowingly agreed to this clause in the admission contract, the nursing home can hire debt collectors, including law firms, to demand that you pay the unpaid bills; sometimes even going as far as personally suing you for the outstanding balance or reporting the debt to consumer credit reporting companies under your name.
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HOW TO SPOT THE RISKS IN YOUR LOVED
ONE’S CONTRACT
Oftentimes you may not realize your loved one’s contract includes these clauses until the nursing homes attempts to collect from you personally. If you are already experiencing this pressure from a nursing home, it is important to reach out to a knowledgeable elder law attorney who can review the contract you signed and advise you on the best way to proceed.
If you haven’t yet signed a contract, it is a prudent idea to have the agreement reviewed by an expert elder law attorney so they can ensure these clauses are not present. At the very least, pay special attention to verbiage such as “responsible party” or “joint and several liability” in the admissions contract. Some contracts also include language about the caregiver’s liability for a completed Medicaid application or make the caregiver jointly liable with the resident for nursing home bills. In any event, make sure you read the contract thoroughly before you sign it.
HOW TO HOLD BAD ACTORS RESPONSIBLE
If you believe you are in a situation as described above, the best thing to do is to speak with an elder law attorney in your area about what you are experiencing. The attorney will be able to advise you on next steps, and help report the nursing home for illegally seeking money from you.
You can also report the nursing home for violating the Nursing Home Reform Act. To do that, you will need to contact your state’s nursing home survey agency and file a complaint with your state attorney. An experienced elder law attorney can also assist you with these actions.
Finally, if you are having a problem with a debt collector, you can submit a complaint to the CFPB online or by calling (855) 411-2372.
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If you would like to discuss your situation with an experienced elder law attorney, contact us today for a consultation.
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Could You Benefit from an
Irrevocable Living Trust?
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When properly designed and implemented, Irrevocable Living Trusts can provide an almost unsurpassed level of asset protection, keeping your assets safe from the high cost of long-term care. And, similar to Revocable Living Trusts, they spare your family the delays, frustration and expenses of the probate process.
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Other reasons to utilize an Irrevocable Living Trust include:
- Tax minimization
- Avoiding the risks of placing assets in the name of your children
- Protecting assets against predators, creditors, and lawsuits
Assets placed in an Irrevocable Living Trust can include a business, cash, investments, life insurance policies, and more.
WHY AN IRREVOCABLE LIVING TRUST COULD BE BETTER THAN A REVOCABLE LIVING TRUST FOR PROTECTING YOUR ASSETS AGAINST THE COST OF LONG-TERM CARE.
The short answer is that under current Medicaid laws, assets in a Revocable Living Trust are not fully protected.
Why? Because any assets you place in a Revocable Living Trust are still available to you, the Grantor.
Therefore, Medicaid may determine that those assets must be used to pay for your long-term care. However, this is not the case with assets placed within an Irrevocable Living Trust, as long as it is properly designed and implemented to take into account the latest laws governing Medicaid eligibility.
HOW AN IRREVOCABLE LIVING TRUST CAN PROTECT YOUR CHILDREN’S INHERITANCE.
When you transfer assets directly to your children, they typically become outright owners of the assets. They also become responsible for the risks associated with owning the assets. A properly drafted and implemented Irrevocable Living Trust will avoid:
- Loss of inheritances due to lawsuits, divorce, remarriage, or the inability of your children to manage money on their own
- Gift tax liability
- Income tax consequences for your children
- Problems with getting financial aid to cover educational and other expenses for your grandchildren
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To determine if an Irrevocable Living Trust is right for you and your family, contact us today for a consultation.
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How to Choose Who Will Fill a Role in Your Estate Plan
Ongoing
The Key Estate Planning Things
Everyone Should be Doing
Ongoing
5 Things all Kids Must Consider as their Parents Age
Tuesday, February 7 5:00 PM - 6:00 PM
How to Plan for The Second ½ of Life
Thursday, February 16 12:00 PM - 1:00 PM
Register today to reserve your spot for these webinars.
Additionally, registration for these events is critical so that we can contact you if it is prudent to cancel this session or if we need to change how we are able to offer this to you.
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A Personal Note From Tiffany
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I'm currently reading Dan Sullivan's "Who Not How" book. The book's premise is that it's not about figuring out "how" to do something; it is knowing "who" can help you accomplish what you need. For those do-it-yourselfers out there, I don't think the idea is not to do something that brings you passion and joy…for that, have at it. But, if you aren't the best positioned to do the task, then find a "who" who can help you.
This "who" not "how" recently came up when a friend called me about their father's health and mental condition. This friend asked me for a referral for home care, and I was happy to do that. The family was running around trying to take care of everything and figuring out the "how". I asked the friend whether they needed our help looking at long-term care strategies and protection planning to help the dad and their mom. Their mom was physically doing okay but was stressed because of the dad's health and mental decline. Their mom was also under financial strain because of the costs associated with the dad's care. My friend was surprised we did this type of work. We were the "who" who could help the family.
With this new year in front of us, I will try to communicate better what we do and how we can be the "who" for elder care concerns. My jumping-off point is to recommend that you check out our Elder Law practice area page on our website. If you are retired or are getting ready to retire, or if you are the loved one of someone who is, there's special planning that you may want to do. This special planning will help make sure you are well-positioned for the journey ahead.
As always, thank you for taking the time to read and reflect.
Sending you all a remote hug,
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Finally, an Estate Planning Guide for Everyone!
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Many books about estate planning are long, complicated, and written in a way that’s hard to understand. Not this one!
Do You Have a Plan? How to Avoid Leaving a Mess (A Guide to Estate Planning) is written by estate planning and Certified Elder Law Attorney Tiffany A. O’Connell. The book is a quick and enjoyable read, thanks in part to wonderful illustrations by Joy Murphy. The book can also be used as a reference guide to easily review important planning concepts in the future.
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