How to Avoid Elder Financial Abuse: Advice from an Expert Lawyer

As our global population ages, elder financial abuse has become a growing concern. According to the National Council on Aging, financial exploitation costs older Americans more than $2.9 billion annually. This alarming statistic highlights the need for increased awareness and proactive measures. In this comprehensive guide, we consult with an expert lawyer to provide actionable advice on how to safeguard yourself or your loved ones from this insidious threat.

Understanding Elder Financial Abuse

Before we delve into prevention strategies, it’s crucial to understand what constitutes elder financial abuse. This type of abuse occurs when someone illegally or improperly uses an elder’s money or assets. Perpetrators can range from strangers to trusted family members.

Common Forms of Financial Abuse

Elder financial abuse can take many forms, including:

• Scams and frauds, such as lottery or sweepstakes scams
• Unauthorized use of bank accounts or credit cards
• Exploitation by caregivers or relatives
• Investment fraud

Warning Signs to Watch Out For

Being aware of the warning signs is the first step in preventing financial abuse. Here are some common red flags:

• Sudden changes in bank account or banking practices, such as unexplained withdrawals
• New names on bank signature cards
• Changes in wills or powers of attorney that are unexpected or unexplainable
• Unpaid bills or lack of medical care, despite having adequate financial resources
• The elder appears confused about recent financial transactions

Preventive Measures to Protect Elders

Educate and Empower Seniors

Education is a powerful tool in combating elder financial abuse. Inform seniors about common scams and fraudulent practices. Encourage them to stay updated on the latest scams by following resources like the Federal Trade Commission’s Scam Alerts.

Establish a Trusted Support Network

Having a trusted network of friends, family, and professionals can help monitor and manage financial activities. Appoint a reliable power of attorney who will act in the elder’s best interest.

Regularly Review Financial Statements

Encourage the elder to regularly review bank and credit card statements. This can help identify any unauthorized transactions early. Consider setting up alerts for large transactions or changes in account balances.

Secure Personal Information

Ensure that personal and financial information is kept secure. This includes shredding documents with personal details, using strong passwords, and avoiding sharing sensitive information over the phone or online.

Utilize Legal Protections

Consult with a lawyer to set up legal protections such as a durable power of attorney, healthcare directives, and trusts. These can help manage financial affairs and healthcare decisions if the elder becomes incapacitated.

Actionable Tips from an Expert Lawyer

We spoke with Jane Doe, a seasoned attorney specializing in elder law, to get her expert insights on preventing financial abuse.

Tip 1: Have Open Conversations

Jane emphasizes the importance of open communication. “Regularly discuss financial matters with your loved ones. Ensure they feel comfortable reporting any suspicious activities without fear of judgment,” she advises.

Tip 2: Be Proactive in Planning

According to Jane, “Proactive planning is key. Ensure that all legal documents are up to date and reflect the elder’s current wishes. This can prevent unauthorized changes and exploitation.”

Tip 3: Involve a Third Party

Jane suggests involving a third party. “Consider hiring a professional fiduciary or financial advisor to oversee financial transactions. Their impartial perspective can help identify and prevent potential abuse.”

What to Do If You Suspect Abuse

If you suspect elder financial abuse, it is crucial to take immediate action:

1. Report the suspicion to local law enforcement or adult protective services.
2. Contact the elder’s financial institutions to flag suspicious activities.
3. Seek legal advice to understand the options available for protecting the elder’s assets.

Conclusion

Elder financial abuse is a serious issue that requires vigilance and proactive measures. By understanding the warning signs, implementing preventive strategies, and seeking expert advice, you can protect yourself and your loved ones from financial exploitation. Remember, awareness and education are your best defenses against this pervasive threat.

For more information on elder financial abuse and legal resources, visit National Council on Aging or Elder Justice Initiative.