MW My mother-in-law thought the world's richest man needed Apple gift cards. How on Earth could she fall for this scam?

By Quentin Fottrell

'Her siblings are all shocked that she would believe this'

Dear Quentin,

We just found out that my 75-year-old mother-in-law is a victim of an online scammer. Her cognition is clearly impaired. She has several health problems. We are getting power of attorney and access to her bank accounts. She is definitely lonely. That, I believe, is the root cause. But that's not an excuse to believe that the world's richest man needs you to send him Apple $(AAPL)$ gift cards. Her siblings are all shocked that she would believe this. How could this happen?

Her only income is Social Security and a small pension. Her only asset is her home. It's paid off. My husband had a brief meeting with a lawyer who offered to transfer the deed to my husband to avoid the five-year look-back rule etc. (His mother agreed to it.) My mother-in-law currently gets a large senior tax break on her property taxes of $4,000 a year, which will go away if we transfer the deed. Should we put the house in a trust? What happens to the proceeds when sold?

Daughter-in-Law

Related: I'm 57 and ready to retire next year on $7,500 a month, but my wife says no. Who's right?

Dear Daughter-in-Law,

You have answered your first question.

Loneliness and impaired cognition is a potent combination for scammers and fraudsters. Your mother-in-law wants to believe there's another person out there in the ether who takes an interest in her, and "sees" her literally and figuratively, but her ability to process what is real and what is fake may also be impaired. The smartest people can fall victim to scams at a vulnerable moment and suspend their disbelief, as if watching a play, until it's too late.

There have been cases recently where older people were scammed of six figures by thieves using AI and/or pretending to be famous people. In January, a French woman said she was conned out of EUR830,000 (approximately $868,000) by someone pretending to be the actor Brad Pitt. She received even more online abuse from people mocking her. She told reporters: "I came forward because I am not the only one."

The smartest people can fall victim to scams at a vulnerable moment and suspend their disbelief, as if watching a play, until it's too late.

While your husband's power-of-attorney document will expire after your mother-in-law's death, estate plans often include what's called a "durable" power of attorney. This permits the trusted individual (in this case, your husband) to retain power of attorney if and/or when your mother-in-law can no longer make decisions for herself. A conservatorship is an involuntary process and takes place when a person is unable to take care of their finances.

Each state has its own rules for guardianships and conservatorships. To apply to be a conservator, your husband would need to file a petition with the probate court in the county where your mother-in-law lives and detail all the responsibilities, powers and duties he intends to take on for her. He would also need to submit a plan for her care. That does not, from what you say, appear to be required in this case.

Your mother-in-law or her POA should also freeze her credit with all three major credit bureaus - Experian (EXPGF), TransUnion $(TRU.UK)$ and Equifax EFX $(EFX)$ - so no one can take out loans or open accounts in her name. People 60 and older are five times as likely as younger consumers to report losing money to tech-related scams, according to the Federal Trade Commission. Phone scams are the No. 1 scam affecting older people, followed by computer-related fraud.

Protecting a family member's home

You should consult an attorney who specializes in elder law. A person's home is generally exempt as long as it is a principal residence and your equity doesn't exceed a certain amount. Other exemptions, depending on where you live, include one automobile as long as it's used to get to and from work, used to obtain medical treatment or is essential because you have a disability. Personal property used as investments - such as artwork - may not be exempt.

The laws on property also vary, depending on where she lives. Several states, including Florida, New York and California, have rules that exempt a primary residence from assets calculated by Medicaid under certain circumstances. In many states, your mother-in-law or her spouse (if he were alive) would need to live in the home or have plans to return to it (if it's empty) if you wish the property to remain exempt from Medicaid.

While one's primary home is generally not counted toward Medicaid's asset limit, it is not exempt from Medicaid's Estate Recovery Program.

While one's primary home is generally not counted toward Medicaid's asset limit, it is not exempt from Medicaid's Estate Recovery Program, the American Council on Aging says. Your state Medicaid agency may attempt reimbursement of care costs through whatever estate of the deceased remains, and that includes the home. Furthermore, if your mother-in-law signs over her home to your husband, he will lose his step-up in-basis tax advantage.

As you suggest, some people plan ahead by establishing an irrevocable trust before the five-year look-back rule. By transferring your assets into an irrevocable trust, you no longer own them and, therefore, they are exempt from Medicaid. "They also protect assets for one's children and other relatives, which is a win-win for Medicaid applicants and their families," says the American Council on Aging.

A Medicaid Asset Protection Trust (or irrevocable income-only trust) can protect the assets of a person who wishes to apply for Medicaid, as long as this is done before the look-back period. You can include stocks and bonds, bank accounts and CDs, and secondary properties. With a MAPT, you are giving up control of these assets. Medicaid can challenge the trust, and the challenge can be complex and expensive.

It will be an easier path ahead if your mother-in-law is open to help.

Related: My wife asked for a divorce after 21 years. She wants to buy a house with our savings, but promises to help pay my mortgage.

You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com, and follow Quentin Fottrell on X, the platform formerly known as Twitter.

The Moneyist regrets he cannot reply to questions individually.

Previous columns by Quentin Fottrell:

My husband will inherit $180K. I think we should invest the money. He wants to pay off his $168K mortgage. Who's right?

'I'm at a loss': My boyfriend of nearly 10 years is naming his elderly parents as beneficiaries and giving them power of attorney. Am I right to be upset?

'We have no prenuptial agreement': Will my wife be able to take my money if I transfer it to my retirement account?

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-Quentin Fottrell

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June 12, 2025 08:37 ET (12:37 GMT)

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