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The sale of annuities to seniors as a way of protecting their assets from being used to pay for nursing home care has been going on for a few years. Scare tactics are often used to frighten seniors into believing an annuity will preserve their funds. An unmarried 81 year old woman from Northern Michigan called us after she had attended a seminar on Medicaid Friendly Annuities, and wondered if this was a good idea. At the time of the call an appointment had been set for a “financial consultant” to come to her home. Our attorney began by explaining the basic rules regarding this type of annuity—that they must be irrevocable and payable in equal installments to the purchaser over the length of their life expectancy resulting in the monthly income from the annuity being paid to the nursing home. Importantly, it was pointed out to the caller that there was no need to purchase the annuity at this time because if the annuity did make sense, it could be purchased at any time prior to her entering the nursing home, thus preserving flexibility for her funds. Due to the complicated nature of this issue, the caller was urged not to buy the annuity until after she had discussed it and her whole situation with an attorney familiar with Medicaid rules. Moreover, since this type of home sale often involves coercion and high pressure sales tactics, the caller was advised to deal with financial professionals in their office where it is easier tell them she wants to take time to carefully consider the sale.

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A 68-year-old unmarried woman called the Hotline about an unpaid court judgment which was resulting in her homestead property tax credit being garnished. Although there was no way to erase the effects of the judgment, our attorney did discover the client’s low income qualified her for SSI and she was referred to the Social Security District Office to apply and the amount she received left her better able to deal with her monthly expenses.

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Sometimes it seems the only solution to a legal problem is to hire an attorney, but Hotline attorneys have a knack for finding alternative solutions that achieve the result and are less costly. A divorced woman from the Brighton, Michigan area called us for advice about changing her name. She had been divorced in 1996 but the Judgment, which had been drafted by her ex-husband’s attorney, was mistaken as to the name she requested. A corrected Judgment was subsequently prepared and the client received a copy, but the last page, bearing the correction was not attached. Checking with the clerk at the courthouse, it was discovered the copy in the court file was also without the last page! Court personnel told the client she would need to hire an attorney to repair the mess. A Hotline attorney suggested the client use the procedure for change of name in the Probate Court and walked the client through the necessary forms and procedure. By filing the petition and representing herself, she was able to secure the change at a reasonable cost.

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Hotline clients sometimes call with a problem that has been manufactured for them by someone giving them well-meaning but misguided advice. An 85-year-old woman whose husband was in a nursing home reported that a social worker at the nursing home told her that due to the husband’s dementia, he should sign a Durable Power of Attorney or seek the appointment of a Guardian. In fact, the husband would not have been competent to sign a Power of Attorney, but beyond that, the situation clearly didn’t require that he have an appointed decision maker---the wife had had no problem dealing with the nursing home, government, and medical personnel. She also had access to all of their assets as a joint owner. We counseled the caller that there was no need to change the status quo and incur the expense of a Guardianship.

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A couple in their sixties is typical of folks who call the Hotline for information about reverse mortgages. They already had a mortgage on their home but still had substantial equity. With a modest retirement income, they were finding it difficult to keep up with the costs of the home and their living expenses, but were determined to stay in the home as long as they could. They called to ask for information about a reverse mortgage. We gave them basic information and clarified for them that the reason they were seeking such a loan was a sound one. After given some cautions to be wary of reverse mortgage scams, they were referred to AARP to obtain the excellent booklet, Homemade Money, and provided contact information for nonprofit associations that could help them seek ethical lenders in their area.

These are just a few of the stories that reflect the effectiveness and efficiently of our Legal Hotline. Our attorneys actually have a hard time identifying such good stories because they consider these additional efforts and superior approaches to just a part of their every day job of assisting those that need their help.

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