SOUNDS TOO GOOD (Thursday's entry)

“...be ye therefore wise as serpents, and harmless as doves.”  (from Matthew 10:16)

“If it sounds too good to be true, it is.”

This piece will be short and sweet but it’s aimed at anyone who is either elderly or will someday be elderly.  I’m not the “brightest bulb” when it comes to financial matters; far from it.  But, be skeptical about the advertising that says, “We can protect your assets so that if you’re in a nursing home YOU get to keep your house and what you’ve worked so hard to save.”

There’s a trick to that one.

My parents each died in 2000, and my father spent the final eight months of his life in a nursing home.  A friend strongly encouraged me to call one of those outfits that advertises on the radio so I could “save my parents’ assets”.  I did call them, and I did receive a mailing from them.  After thoroughly reading the mailing, I realized the trick.  If my parents (or someone legally responsible for them) signed up for this “service”, as long as my parents lived they could keep their house and assets.  HOWEVER, as soon as they died, it would pretty much be GONE...between the nursing home, the government, and that “service agency”.  In all fairness, Howie Carr advertises a lawyer who DOES seem to say he will arrange things so that “you can pass your assets on to your children”- so I’ll give that lawyer a pass, but BE CAREFUL.

This sort of thing is on my mind for two reasons.  ONE, because on 96.9 FMTalk, the same outfit I wrote away to for information is running those ads aimed at the elderly;  telling them they can keep their homes and their assets. TWO, because I talked to an elderly woman a few days ago who was very happy and excited.  The only reason I’m telling her story is that she does not have a computer,  and has no idea how to access e-mail or blogs.  She thought she’d hit the jackpot!

“I found out that when you’re over 70 you DON’T HAVE TO PAY YOUR PROPERTY TAXES ANYMORE!” she told me, “You can just DEFER them!  When you and your husband are both dead, THEN the house can be sold and all the back taxes can be paid to the Town!  Isn’t that GREAT?!”

Well. admittedly, it does have a good point.  Neither she nor her husband will ever have to worry about property taxes again.  BUT...their three adult children will.  Now, I’m not saying kids should be greedy...just WAITING for their elderly parents to “kick the bucket” so they can cash in. NO.  But if after our parents’ death, my sister and I had to sell the family homestead and owe at least $40,000 in taxes to the Town, I can tell you we wouldn’t have been all that thrilled.

Reverse mortgages are also wonderful for the elderly people,ut can be terrible for those who are left behind.

Again, I’m not a C.P.A.  and I’m not a C.F.P. (“certified financial planner”).  But:  just F Y I,  if it sounds too good to be true, it is.

Please check this stuff out and be careful.