There are several government benefits that veterans and their surviving spouses may receive. Many of these benefits offer a significant monthly tax-free payment to help offset the high cost of long-term care. Examples of this care include the cost of private caregivers, assisted living facilities, and residential care facilities for the elderly (“Board and Care”). Applying for these benefits can be very complicated, and many seniors need assistance and guidance in the eligibility and application process.
Unfortunately, annuity salesmen and unscrupulous financial planners pretend to be associated with the government or military. They lure seniors in with fancy military advertisements, and promise to get these benefits for the senior Veteran or the Veteran’s surviving spouse. They use clever military logos, and appear to be approved or endorsed by the government. However, they have nothing to do with the military or government. Instead, they sell annuities to the senior, receive hefty commissions for these unsuitable financial products, and receive large fees. And many times, the result is a terrible financial investment, no VA benefits, and even a tax liability.
In response to this growing problem, a new California law was passed: SB 272, which amends section 17533.6 of the Business and Professions Code. This law prohibits financial salesmen or others to use misleading advertising, which implies that the individual or organization works for, or is approved by the military. This new law was necessary because seniors trust advertisements containing official-looking government symbols.
Like other scams and frauds, it will take time to correct this problem. Predators get caught, close down, and open under another name. Senior Veterans continue to get hurt. Although California is trying to protect our Veterans, it is important to know this fraud is all too common. Buyer beware…or should we say: Senior Beware!
For more information, please call the Law Office of Jane M. McNamara at 661-287-3260, or visit www.VAbenefits4seniors.com, or www.janemcnamara.com.