Elder abuse is often in the news but refers primarily to the physical neglect or abuse of the elderly who are unable to defend or fend for themselves. What these news stories fail to report is the high level of financial elder abuse that takes place on a much larger scale than physical abuse.  Regardless of intention, when these conflicts occur, they can be detrimental to a senior’s life.  Preventing elder abuse is a big concern and it is continuing to grow as our population ages.

*This blog is for educational purposes only and should not be considered legal advice. The use of the Paths Law Firm website does not constitute a client-lawyer relationship.

What Is Financial Elder Abuse?

In response to this growing problem, Missouri legislature enacted a specific criminal statute entitled “Financial exploitation of the elderly person or person with a disability.”  This is when an offender knowingly obtains control over the property of the elderly person or person with a disability with the intent to permanently deprive the person of the use, benefit or possession of his or her property thereby benefiting the offender or detrimentally affecting the elderly person or person with a disability. 

Basically, financial abuse of the elderly can be the misappropriation of funds or financial resources or the misuse/abuse of financial control over a person. Legally, this abuse must cause harm to the elderly person. The harm can either result in financial losses or physical deprivation.  Even though there is a criminal statute, financial abuse goes mainly unreported as often it occurs by a family member.  Also, it is often known to be occurring, but proof is difficult. 

Elderly individuals are considered easy targets by scam and con artists. In fact, these criminals often go out of their way to single out an elderly person of whom to take advantage.  This type of abuse can result in the draining financial resources, savings, or funds set aside for retirement on a small to large scale. It is important to note that these tactics are not necessarily aimed at the wealthy but any elderly person who has any funds available. Personal friends and family members are often guilty of fraudulent misappropriation and abuse of financial control.  

Financial Abuse Signs to Look Out For

If you suspect someone you know to be a victim of financial abuse, you may want to watch for the following signs:Financial Abuse Signs to Look Out For 

• Unusual or high ATM activity
• Large withdraws from banking accounts or checking accounts
• Signatures on checks that do not match the elder’s signature
• Credit card use that is unusual
• Unpaid bills or collection letters
• Lack of food in the house
• Missing possessions
• Abrupt changes in mood or demeanor

Likely the best way in preventing elder abuse is to stay connected to both the senior and those that are part of the family or support network.  Be sure to follow up on any of the signs that you note that could indicate possible financial problems.

What Measures Can Be Taken to Prevent Financial Abuse of the Elderly?

If you think that an older person may be a victim of elder abuse, you need to act.  Here are some ways that you can help in the prevention of elder abuse:

• Be Vigilant – Communication is a great way to hep in preventing elder abuse. Be sure to ask questions.  Check-in daily and ask about phone calls received or interactions that may have taken place regarding sales calls over the phone or in person.  Get the contact details for the company or person that they dealt with and do some research to determine if the contact was legitimate and follow up with the salesperson if you feel that your parent or elderly friend has been taken advantage of.    
• Check financial accounts – If you have access to checking accounts, savings accounts, and credit cards, be sure to monitor transactions for anything that seems suspicious.  Also, make sure that bills are being paid regularly and on time. If there is a suspicion of attempted elder abuse or if elder abuse has already taken place, contact an attorney as soon as possible. 
• Get to know Friends and Neighbors – Knowing the individuals that your parents or older relatives and friends are associated with can provide valuable information.  It allows you to first have additional people watching out for abuse.  Secondly, it lets those individuals that are possible abusers know that you are watching what is going on.

Reporting Suspected Elder Abuse

The Senior Safe Act of 2018 requires any financial institution to report the suspicion of elder abuse to the relevant authorities. This includes brokers and financial advisers. These laws act as a deterrent to those who plan to take advantage of the elderly on a financial level. However, the public can also report suspected financial elder abuse to their local APS (Adult Protective Services) office to investigate the matter. It is highly recommended to contact an attorney if there is a suspicion of elder abuse.

• Protective Services – Contact your local protective services hotline for assistance.  They can coordinate the efforts of law enforcement, social services, and other agencies when allegations are made.  
• Nursing Home Ombudsman – If the abuse is occurring in a nursing facility by staff or a resident, be sure to report your suspicions to the nursing home ombudsman.
• FTC Identity Theft Reports – If there is suspicion of identity theft, create an identity theft report.  Take the report to your local police department to be filed.  Next, be sure to contact all credit card companies as well as credit bureaus.
• Financial Institutions – Contact banking institutions to make them aware of your concerns.  Their fraud department will open a case to identify suspected abuse.

Get Help From an Elder Law Attorney

An Elder Law Attorney will work with older adults and their families to help protect them and their future.  They will establish legal documents such as trusts, and powers of attorney to discourage scammers and assist in preventing elder abuse. 

1. Living Trust – A trust places assets such as property, financial resources, and other assets of value in the control of a third party such as an attorney or trusted family member. In essence, the original owner of the asset or financial resources placed in trust has use of the asset or resources while not actually retaining ownership. Ownership will pass to a stated beneficiary of the trust under the terms and conditions of the trust. The person in control of the trust will only release assets if the terms and conditions of the trust are met. 

This gives the trustee the power to first assess what assets (such as monetary funds) will be used for before the money is spent. However, it is important to note that this level of control can also open an elderly person to financial abuse. It is important to select the person who will be in control of the trust carefully. It is often recommended to have a reputable attorney or financial advisor make decisions regarding a Trust.

2. Power Of Attorney – A Power of attorney is another way to protect finances.  It designates how and when financial resources are spent. A Power of attorney can be granted to any person that the elderly person agrees to have in control of their finances and make financial decisions on their behalf. In the case where an elderly person no longer has the ability to make financial or other decisions on their own, the court can be approached to grant power of attorney to another person in order to protect the best interests of the elderly person. Once again, it is important to select who is granted the power of attorney carefully to prevent misuse of control. 

3. Guardianship (and/or Conservatorship) – This is typically a last resort, but when a loved on lacking capacity refuses to allow their power of attorney to do their job or they did not place a power of attorney before their incapacity, a court-appointed guardian (of their person) and/or conservator (of their income and assets) may be necessary.

Staying proactive, addressing any suspected financial issues, and seeking assistance from an Elder Law Attorney are crucial steps in preventing elder abuse.  Your vigilance in helping to prevent this type of abuse can make a big difference in the life of others.  If you or your loved ones have been a victim of or suspect elder abuse, Paths Elder Law can help.  We focus entirely on helping with legal issues that impact seniors and their families.  Advanced planning can help protect you and your family from falling victim to abuse.  Contact Us Today to Schedule a Consultation.