By Loren Acuña

Written or edited by Loren Acuña. Please feel free to add to the thoughts presented here by posting a comment or question.

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Monday, March 2, 2015

In Like A Lamb, Out Like A Lion

How does a fiduciary turn an elderly client’s non-liquid, non-investable estate into over $700,000 investable or usable assets? 

My client was referred by the in-home care provider because she had no nearby health agent and was having difficulty paying her bills. Her only daughter lived across the country and suffers from anxiety disorders.

We started out like a lamb. The elderly woman needed help and protection. I did not know how much help until I started working with her. The first steps were to get to know her and help organize and secure her important papers. She was convinced that someone snuck into her Rossmoor condo and moved or took papers.

As I worked with her to understand her financial situation and begin paying her bills, she shared with me a concern that weighed on her. She felt an insurance agent had taken advantage of her. Naturally, I was concerned. She had never talked with an attorney about it and this had occurred many years ago. I wanted to review the insurance policies and paperwork before jumping to conclusions.

It took time to locate and gather all the pertinent paperwork because the client is an information hoarder. She loves to keep old newspaper articles, magazines and statements in stacks and stacks all over her condo. There was room for paramedics to enter, so I decided we would take it at her pace to locate what was needed as we worked together to unravel her financial picture. She took pride in the steps we took together to organize her papers.

When I finished gathering paperwork, my spreadsheet revealed 16 insurance or annuity policies totaling over $800,000 in premiums paid. Many were policies issued through a 1035 exchange or other policies cashed out. Determining how much new money had been placed into these policies was daunting. It would have been impossible for my client to gather and organize this information to discuss clearly with an interested attorney.

It was very clear that a single agent and their partner had churned the policies and oversold an elderly woman with very little income or assets, purely for the lucrative up-front commissions paid.

In comes the lioness side of my work. Once I had the paper trail, I began to aggressively search for an attorney qualified to handle the potential litigation against the agents and the insurance companies; combined with the complexity of having the Power of Attorney pursue the claims against these entities. This took persistence. Most attorneys I spoke with did not have the right amount of experience with insurance companies or in some other way disqualified themselves.

I was not willing to let it go. Diligence and persistence paid off for my client. Through a series of steps taken this past year, including pursuing the insurance companies, my client now has enough in liquid, investable assets to serve her needs for the remainder of her lifetime. She is living in a memory care facility near her daughter and granddaughter. She can enjoy this time of her life without the worry that was nagging at her when I first met her.  A happy ending to the story of "In Like A Lamb, Out Like A Lion" could be available to you or your clients.

If you or your client needs a fiduciary who knows how to come in like a lamb, but go after your needs like a lion, please call (925) 906-1882 for a free initial consultation.

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