As individuals age or face health challenges, many turn to personal aides to maintain their independence and quality of life; however, a crucial aspect often overlooked is ensuring the safety and security of the individual and their assets. A common question arises for those utilizing trusts for asset management and care: can the trust funds be legitimately used to cover the cost of background checks for these hired aides? The answer is generally yes, but it requires careful consideration and adherence to the terms of the trust document and applicable laws; it’s not a simple yes or no.
What Expenses Can a Trust Typically Cover?
Most trusts are designed to provide for the beneficiary’s well-being, which includes healthcare, housing, and general living expenses; a well-drafted trust document will broadly define permissible expenses, but ultimately, the trustee has a fiduciary duty to act in the best interests of the beneficiary. This duty encompasses ensuring the beneficiary’s safety and protecting assets from potential harm; therefore, expenses directly related to safeguarding the beneficiary, like background checks, can usually be justified. According to a recent study by the AARP, approximately 40% of caregivers have engaged in some form of unethical behavior, highlighting the need for thorough vetting processes. This could include things like criminal record checks, verification of references, and even credit checks to assess financial stability. The cost of these checks can range from $50 for a basic criminal background check to several hundred dollars for a comprehensive screening, depending on the level of detail and the provider used.
Is it Considered a Prudent Expense for My Loved One?
Determining whether a background check is a “prudent expense” is key; trustees need to demonstrate that the expense is reasonable and directly benefits the beneficiary. A trustee must be able to justify the cost, not just in terms of financial value, but also in terms of peace of mind and risk mitigation. Imagine Mrs. Gable, a sharp 88-year-old who lived alone and wanted to maintain her independence; her trust provided funds for in-home care. Her family insisted on comprehensive background checks for each aide, which initially seemed excessive to the trustee. However, a few weeks into the care arrangement, it came to light that one aide had a history of petty theft, later discovered, which thankfully hadn’t impacted Mrs. Gable’s belongings, but it certainly caused alarm; a complete background check would have revealed this information beforehand. A prudent trustee will balance the cost of the check against the potential risks of hiring someone without proper vetting.
What Happened When We Didn’t Do a Background Check?
Old Man Tiber, a successful vintner, was a proud man. When his health began to fail, his daughter, Eleanor, stepped in as trustee of his trust and arranged for in-home care. She felt confident in her interview process and trusted her gut, thinking background checks were unnecessary and overly intrusive; after all, she reasoned, these were just kind folks wanting to help. It was a beautiful spring day when things took a turn. Mr. Tiber’s prized antique pocket watch, a family heirloom, disappeared. The aide, a seemingly pleasant young man, was the only one with access. The police investigation revealed a pattern of similar thefts from previous employers. The emotional toll on Mr. Tiber was immense, and the loss of the watch was devastating; Eleanor deeply regretted not taking the simple precaution of a background check, realizing the financial loss was secondary to the breach of trust and security.
How Did Thorough Vetting Save the Day?
Following the incident with Mr. Tiber, Eleanor, now much wiser, took immediate action. For her father’s new aide, she implemented a rigorous vetting process: a national criminal background check, a motor vehicle record check, reference verification, and even a credit check. A week into the care arrangement, the screening process flagged a minor discrepancy on the aide’s application—a previous address that didn’t match public records. A deeper investigation revealed the aide had fabricated a portion of their employment history and had a history of financial instability. Though the initial interviews had been favorable, the thorough vetting process uncovered the deception, preventing a potentially disastrous situation. Eleanor learned a valuable lesson: protecting assets wasn’t just about financial prudence, it was about safeguarding her father’s well-being and peace of mind; and a seemingly small investment in background checks could save a world of heartache.
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About Steve Bliss at Wildomar Probate Law:
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Feel free to ask Attorney Steve Bliss about: “How do I choose someone to make decisions for me if I’m incapacitated?” Or “What happens if someone dies without a will—does probate still apply?” or “Do I need a lawyer to create a living trust? and even: “What is reaffirmation in bankruptcy and should I do it?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.