Financial Abuse Of The Elderly

Financial exploitation of older adults is a growing yet hidden epidemic. The media regularly chronicles outrageous behaviors involving awful and unlawful treatment of older adults. Gender, circumstances, the relationship of the perpetrator to the victim, and other elements of the stories change but the outcomes are similar - compromised health, wellness and safety of older adults.

Vulnerability to elder abuse increases as a result of age-related changes and challenges such as cognitive impairment, reduced sensory capabilities, mobility challenges, depression, isolation, and dependency on others for assistance with daily living activities.

What is “Financial Abuse”?
It’s using the elder’s money or assets contrary to the elder’s wishes, needs, or best interests - or for the abuser’s personal gain.
For example:

• Taking money or other items from the elder’s home or bank accounts
• Selling or transferring the elder’s property against their wishes or best interests
• Failing to provide agreed upon services to the elder, such as care giving, home or vehicle repair, or financial management
• Using the elder’s credit cards for unauthorized purchases
• Using the elder’s name or good credit to open new credit accounts
• Misusing the elder’s Power of Attorney (POA)
• Refusing to return borrowed money or property as agreed upon, or when requested by the elder or their agent
• Creating or changing living trusts for the benefit of the abuser
• Changing the elder’s will, trusts, or inheritance for the abuser’s benefit

Warning Signs of Financial Exploitation

• Financial Activity
• Activity inconsistent with elder’s ability, such as ATM use by a physically impaired person
• Numerous new withdrawals, usually in round numbers ($50, $100, $1,000, $5,000, etc.)
• Increased activity on credit cards
• Withdrawals made from savings or CD’s in spite of penalty assessments
• Change in account beneficiaries
• New authorized signers on accounts
• Elder is confused about recent financial arrangements
• Change in property title, quitclaim deed, or new or refinanced mortgage
• Inheritance & Wills
• Recent change in Power of Attorney or Durable Power of Attorney
• Recent change in Will or Trust, when elder is clearly incapable
• Recent change in Will or Trust to favor a new or much younger “friend”

What is “Undue Influence”?
When a person in a position of trust takes advantage of a vulnerable elder to gain control of their money, property, or their life - either directly, or through a POA, a trust, marriage, adoption, or inheritance.

• How is Undue Influence Accomplished by Abusers?
• By isolating the elder from contact with other family members, friends, and society
• By controlling the elder’s mail, phone calls, visitors, and outings
• By falsely promising the elder to take care of them for the rest of their life
• By falsely worrying the elder with the fear that they will lose their house and be placed in a nursing home
• By lying to the elder that no one else cares about them except the abuser
• By manipulating or withholding the elder’s food or medication so they become weak and compliant
• By threatening the elder with harm, neglect, or abandonment if they don’t agree to do what they are told

Who Might Be An Abuser

• Family members tend to be the most common - some well-intended and others just out to get gain
• Caretakers - paid or volunteer
• Strangers - met in public, or over the phone, or those who come to the door
• Professionals hired by the elder - accountants, bankers, lawyers, doctors
• Is there a new person involved in the elder’s life, with no logical reason for being there, such as a new boyfriend or girlfriend much younger than the elder?
• Has the elder recently changed their doctor, lawyer, accountant, or other professional?

It is important that those who love for their elderly relatives also care for them.  The best way to prevent financial abuse of the elderly is to talk to them often, visiting is even better, so you can assess their living conditions, treatment and care, and state of mind.  Even when trying to determine someone’s capability of caring for themselves, children and friends must take into consideration the senior’s right to respect and self-determination.  No matter the age or state of health, these are people who have generally worked very hard to help friends and family most of their lives.

If you suspect Elder Abuse, you can visit the website www.albertaelderabuse.ca for contact information and help.

A very good article is available at the National Post on this subject.  Jerry