Thieves Steal Thousands of Dollars from Nursing Home Trust Funds

According to the 2010 United States Census approximately 13 percent of the total population is 65 and over. Due to the “Boomer Generation” the number of people age 65 and older will eventually comprise 20 percent of the U.S population.

As many more people begin to wonder how their elderly loved ones will be taken care of in the future, nursing home facilities are becoming an increasingly popular option. There are an estimated 16,000 facilities across the United States housing over 1 million elderly residents. Although families entrust nursing homes to adequately take care of their loved ones, many facilities are failing to do so.

Along with nursing home abuse and neglect, families now need to worry about where their loved ones’ money is going. Nursing home trust fund theft has become a serious problem in nursing home facilities across the U.S.

The USA Today reported on the problem and found that since 2010 more than 1,500 nursing homes have been cited for the mismanagement of trust funds as well as for the failure to protect trust funds from thefts.

Nursing homes trust funds work similarly to a conventional bank account. Accounts are created for nursing home residents and they may deposit social security, pension checks, and funds from loved ones. Their accounts collect interest and residents can receive statements that include deposits and withdrawals. From these trust funds residents may pay for their living expenses and other needs.

One of the pitfalls of these trust funds is that typically only one person is in charge of handling these accounts, and oftentimes it is that person who is stealing from residents.

According to the USA Today, more than 100 employees have been prosecuted for stealing money from trust funds since 2010. Of those thefts 30 percent involved tens of thousands of dollars or more and at least 10 thefts exceeded $100,000.

In Texas, Judy C. Putnam was accused of taking more than $350,000 from patient trust fund accounts at a nursing home in Waxahachie. She was caught when a forged signature did not match bank records.

Many believe that the problem stems from lax oversight of nursing home trust funds. Although inspections are generally carried out at nursing homes, most surveyors are more concerned about the health and safetyof residents rather than their financial well-being.

USA Today surveyed 36 state and local ombudsmen and nearly 90 percent said that tighter oversight is needed and that either new regulations should be developed or old ones better enforced.

Those who have loved ones in nursing homes can request statements and receipts for purchases made on behalf of the resident to ensure their loved one’s trust fund is being well taken care of. Furthermore, if an individual’s trust fund is mishandled the nursing home should have adequate insurance coverage that can return stolen funds to residents.

If you believe that your loved one’s nursing home trust funds has been stolen from, report the problem to management or a local/state ombudsmen right away.