How We Helped a Widow Recover a Lifetime of Savings

Gladys was a widow living alone, 79 years old, who broke a hip. Her conservator wanted her to recover in her own home with 24-hour caregivers. But on investigating her finances, he was shocked to find she had no money to pay for such care. He asked ASI to step in.

Red Flags

We discovered that a few months before, Gladys had fallen prey to a persuasive insurance agent. He had convinced her to invest $1 million, all the money she had, in an annuity that would become payable in 2025 – when Gladys would be 131 years old. (Needless to say, the insurance agent got his substantial commission immediately, and didn’t have to wait until 2025.) Gladys had no access to her own money that she now needed, at least not without paying tens of thousands of dollars in penalties and probably going to court.

Aging Solutions Action Plan

Aging Solutions was long familiar with this type of financial exploitation, which unfortunately still continues: annuities are being sold every day to the elderly with severe penalties for the early release of funds, penalties that would apply exactly during the time when the funds would be needed the most for long-term care.

Aging Solutions referred Gladys’s conservator to a forensic geriatric psychiatrist. He was able to determine retroactively and conclusively that Gladys was incapable of understanding what she was signing. The contract for the annuity was therefore invalid under California law.

With the help of the psychiatrist and a lawyer and another trusted insurance professional, Gladys’s conservator was able to challenge the validity of the contract. However, it still took months of letter writing and arguing with the insurance company before they would agree to let Gladys out of the contract without penalties, and they returned her money.

Results

  • $1.3 million was recovered without penalties of any sort
  • Gladys lives comfortably in her own home with 24-hour caregiving, with ASI monitoring
  • ASI reported the incident and the insurance company’s practices to the appropriate authorities

 
If you would like to learn more about Aging Solutions and our elder care managers, please call us for a free consultation: 415.324.5088.