According to the U.S.
Census Bureau, the nation had more than 9.3 million veterans aged 65 and older
in 2013. For most of us, Veterans Day means a time to thank all our former
servicemembers. But it’s a sad truth that scammers operate out of greed, not
gratitude. Not-so-honest people target older veterans and their families to
cheat them out of their hard-earned benefits.
In one type of scam, unscrupulous advisers claim to offer free
help with paperwork for pension claims. But these attorneys, financial
planners, and insurance agents persuade veterans over 65 to make decisions
about their pensions without giving them the whole truth about the long-term
consequences. They tell veterans to transfer their assets to a trust – or to
invest in insurance products – so they can qualify for Aid and Attendance
benefits. What they don’t say? The transaction could cause the veterans to lose
eligibility for Medicaid services or the use of their money for a long time.
For veterans experiencing cash flow trouble, there’s a different
pitfall. Some companies offer an advance on your pension to get you the funds
you need fast. You sign over your monthly pension checks for, say, five or 10
years, in exchange for a lump sum payment of a lesser amount. Pension advances
aren’t a cheap way to get cash; fees can be high. And what’s more, the company
often requires retirees to buy a life insurance policy – with the pension
advance company named as the beneficiary – to make sure that the repayments
continue.
If there are veterans in your life, fill them in about these
scams. Encourage them to pass it on to their friends, family, and community to
help more veterans dodge a bad deal.
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