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Ensuring good care for yourself and your loved ones as they age is extremely important, especially when considering a nursing home. Knowing what rights you have with your finances is essential when entering one. So can nursing homes take your savings accounts?
A nursing home can’t take your savings account. They can only have control of your finances if you sign a waiver stating they can manage your funds. They also have to provide receipts and access to the money upon request. Most families opt for a relative to manage an elderly person’s funds.
In the rest of this article, I will discuss several ways you can protect your parent’s money when they’re entering a nursing home. So if you want to learn more about how to keep your parents’ savings safe during this vulnerable period of their life, read on.
How To Protect Your Parents’ Money if They Go Into a Nursing Home
One of the most significant difficulties with placing a loved one in a nursing facility is the financial drain these establishments can cause. If you have reached a point where a family member needs to be placed in one, you must take steps to protect their finances.
So what are the most effective ways to keep your parent’s money safe while they’re in a nursing home?
Educate Your Parents About Scams
Unfortunately, we live in a world where bad people will take advantage of those who are vulnerable. Educating your parents about scams, especially the ones that commonly target the elderly, helps them know what to look out for.
The most common elderly financial scams include:
- Government impersonation scams: These cons often claim that the victim hasn’t paid their taxes correctly or owes the government some money. The victim is then pressured into paying the scammers a sum of money. In reality, the government would NEVER call in this manner to collect a debt.
- Winning something like a sweepstakes or free item: It can be hard to resist winning something for free, but it’s essential to teach your parents that nothing is free. These scams will ask for your parent’s information and often result in them paying to have the item shipped (the item never arrives).
- Fake robotic call scams: These kinds of calls sound pretty realistic and will often transfer to a person who will sell the victim on something. These calls often try to sell services that the victim doesn’t need, like an extended car warranty.
- Catfishing cons: If your parents are single, it’s a good idea to talk about the plethora of romance scams in the world. Your loved one should never send money to a stranger they met on the internet, especially to a foreign country.
- Investment scams: There are many fraudulent money-making schemes out there, such as those that pretend to offer financial benefits for an investment. Your parents must understand that no financial investment decisions are to be made without a trusted family member or professional help present.
- Text messaging or email scams: Some of the more common scams are sent via email or text message. Many elderly parents aren’t tech-savvy, so it is essential to educate them on what to watch out for and not to click on or respond to suspicious text messages or emails.
These are just a few of the most common cons and tricks your parents could encounter in their old age. The better prepared they are, the less likely they will be to fall victim to them. It’s important to reinforce to your parents that they can always consult you if they aren’t sure about a call or message they’ve received.
Hire an Elder Law Attorney
If finances permit, hiring an elder law attorney can be a great benefit as your parents prepare to enter a nursing home. An elder law attorney is specifically trained to work with the elderly on their legal needs, so you and your parents won’t have any trouble navigating state and local rules/regulations.
Elder law attornies primarily help with things like:
- Medicare or Medicaid applications and plans
- Claims and appeals of most kinds
- Disability
- Social security
- Nursing home legalities
- Writing a will
- Creating a living trust
These attorneys are trained to navigate all the rules and regulations of setting your parents up in their old age. Hiring one can also help keep your parents money safe and ensure that you know what assets your parents have at their disposal.
Set Up a Living Trust
A living trust is another good way to keep your parent’s money safe. A living trust is a legal document that a person sets up to help protect their assets should they fall ill or no longer be able to care for themselves/make their own financial decisions.
A trustee is assigned over the living trust (a trustee can be a trusted family member or even an attorney) to help execute the wishes of the owner of the trust. This kind of trust would ensure that your parent’s wishes are fulfilled if their mental capacity declines and you have to make all the calls.
Once the elderly party has passed, the assets are handled according to the instructions they left. An elder law attorney will be more than qualified to help draw one of these documents up.
Get Power of Attorney To Manage Their Money Yourself
Another step towards keeping your parent’s finances safe is getting power of attorney. This step is only necessary if you feel their mental capacity has diminished and they need help making financial and medical decisions.
Having power of attorney will give you the right to manage your elderly parent’s money to ensure they have enough finances to receive adequate care once they’re in a nursing home. Additionally, you will be able to help with medical decisions to keep them happy and healthy for longer.
Again, it’s best to consult an elder law attorney if you want to apply for such legal power and feel your parents could use this extra help.
When you want to use nursing home care for your elderly parents, you may be asked for your financial information to determine whether you are eligible. Read my in-depth guide to learn more about financial disclosure. Why Do Nursing Homes Ask for Your Financial Information?
Conclusion
A nursing home has no legal rights to your money or your parent’s accounts. However, they may offer to manage finances to make things easier for aging patients. Still, most families opt to have a trusted relative manage funds rather than turning the money over to the care facility.
There are many ways you can step in and help your parents manage their money appropriately. The best course of action is to create a plan with them before they’ve aged to the point of needing extensive care. It may also be helpful to consult a lawyer for the elderly.
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