Seniors are increasingly becoming targets for elder abuse financial exploitation. As people over 50 years old control over 70 percent of the nation’s wealth, fraudsters are using new tactics to take advantage of retiring baby boomers and the growing number of older Americans. Senior financial abuse will cost victims at least $2.9 billion this year alone.
But deceptive fraudsters are not the only ones taking advantage of the elderly. It is often family members that initiate the fraud and exploit family members.
Manning & Clair recently handled a case where a family member (the ‘uncle’) passed away leaving his estate to his sister who suffered from dementia. A niece (the daughter of the man who passed away) – who had no contact with her aunt for some time – reentered the picture telling the aunt people were stealing her money. (The daughter and her siblings were removed from the will.)
Under the pretense of wanting to protect her money, the niece convinced her aunt to grant her power of attorney over her affairs. Fortunately, the brother had a partner who was close to the aunt and noticed this concerning behavior.
Working with Manning & Clair they filed a guardianship request with the court and safeguarded the aunt’s money.
Red Flags of Elder Abuse Financial Exploitation
Like the partner in the earlier referenced example, knowing the signs of elder financial exploitation is the first step to preventing abuse and protecting your loved ones and friends.
- Isolation – An isolated or mobility-limited elderly person is likely to think differently. This can lower their guard and allow them to establish trust levels with people they would not normally interact with.
- New People in their Lives – Are new people suddenly interjecting themselves into the picture and giving advice on financial or legal matters, driving them to the bank, lawyer or financial adviser’s office or paying their bills? It could be a neighbor, niece or nephew or other family member and it may start as a genuine offer of help, but a sudden interest where there wasn’t before could be a red flag.
- Changes to Legal or Financial Documents – Sudden changes to legal or financial documents — estate documents, insurance policies, retirement accounts, etc. – is a definite red flag. Making multiple unexplained trips to attorneys or financial advisers without notice or switching advisers without consent because “Mary or Bob said we should switch” and missing financial statements are red flags.
- Encountering A Gatekeeper – If a new ‘friend’, ‘helpful’ neighbor or long-lost relative comes into the picture and restricts access to an elderly relative or won’t allow you to speak to the family member without them being present, it should raise a red flag.
- New Phone Numbers or Email Addresses – Suddenly changing cell phone numbers or email addresses, cell phones being turned off, another person answering phone or oddly worded texts, or email responses are red flags someone else has access to and is ‘managing’ communications.
- Unusual Behavior – Giving away money, transferring assets to new ‘friends,’ unusual spending behavior, checks being written to ‘cash’, or the unexplained disappearance of cash or property are red flags something isn’t right. Exploiters will often sow seeds of mistrust by telling elderly individuals ‘stories’ that well-meaning relatives are trying to ‘steal’ their money and not to trust them.
Preventing Elder Abuse Financial Exploitation
The first thing you can do to help prevent elderly relatives or friends from becoming victims of financial exploitation is to maintain regular contact with them. Knowing what is going on in their lives helps prevent bad actors from entering the picture.
In elder financial exploitation cases the best advice to well-meaning relatives or friends is to trust your gut. If something doesn’t feel or sound right, don’t be afraid to ask questions and challenge new ‘friends’ or relatives in a polite but firm manner.
If your gut continues to tell you something isn’t right, enlist the services of an experienced probate attorney to investigate the situation.
The Manning & Clair Difference
Manning & Clair Attorneys at Law have extensive experience dealing with elder financial exploitation. Should you need help protecting your elderly relatives or friends, put our experience to work for you.
Manning & Clair Note: The information shared here is intended for a general overview and discussion of the subject. It is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. Please consult an attorney for advice about your individual situation.
