Recognizing Signs of Elder Financial Abuse
As your parents or other loved ones age, it’s important to understand the potential for elder financial abuse. This article shares signs of elder abuse, how to protect loved ones from being taken advantage of, and what to do if you suspect abuse.
What Is Elder Financial Abuse?
Elder financial abuse is the exploitation of an older adult. It can include theft, fraud, forgery, or any other type of manipulation. The goal of the abuser is to take advantage of an older adult’s financial resources, often without their knowledge or consent.
Family Members as Abusers
It’s a difficult truth to accept, but family members are often the most likely perpetrators of elder financial abuse. In fact, the National Adult Protective Services Association reports that the “vast majority” of cases have involved relatives, caregivers, friends, or other people the victim knows.
In some cases, adult children may feel entitled to their parent’s assets or be in a position of power to manipulate their parent’s financial situation. In other cases, family members may struggle financially and see the aging loved one’s resources as a solution to their own problems.
Signs of Elder Financial Abuse
Several signs can indicate elder financial abuse, including:
Sudden changes in financial situations: You may notice sudden changes in a parent’s financial situation, such as unpaid bills or large withdrawals from bank accounts.
Transferring assets or making changes to estate documents: If a parent’s will or trust has been changed or they have suddenly moved assets to somebody else, you may want to investigate further.
Isolation from family and friends: If an aging loved one has become isolated from family and friends, it could be a sign that someone is trying to exert control over their finances.
Lack of basic necessities: You may notice that your parent or other loved one lacks basic needs like food, clothing, or medical care, which could signal their financial resources are being misused.
Unfamiliar people: Your parent may suddenly have new friends or acquaintances who seem overly involved in their financial affairs.
If an aging loved one has cognitive decline or physical issues, they may be even more vulnerable to exploitation.
Steps to Protect Parents and Other Aging Family Members
Steps you can take include:
Have open conversations about finances: It’s important to have open and honest conversations with your parents about their finances. This can help you identify potential issues and take steps to prevent them.
Keep an eye on financial accounts: Regularly checking your parent’s financial statements can help you identify any unusual activity and prevent potential financial abuse.
Add a “trusted contact” to their financial accounts: Discuss with your parent the possibility of adding “trusted contacts” to their accounts. For instance, our fiduciary retirement planning firm can add a trusted contact to certain investment accounts so that they can be contacted if any potential issues are detected. This can help you catch not only financial abuse but also identity theft and scams.
What to Do If Elder Abuse Is Suspected
If you suspect that your parent or another elder is being financially abused, it’s important to act immediately. This can include:
Calling the National Elder Fraud Hotline: Run by the U.S. Department of Justice, the National Elder Fraud Hotline can guide you about reporting and other steps. Call (833) 372-8311.
Reporting it to your state’s Adult Protective Services: Use this directory by the National Adult Protective Services Association to find your state resources.
Contacting local authorities: If you believe a crime has been committed, contact your police or sheriff’s department. They can investigate the situation and take appropriate action. If there’s an immediate risk of harm, call 911. You can also contact your local district attorney’s office and ask them to prosecute.
Contact your state’s long-term care ombudsman program: Ombudsmen advocate for people in nursing homes and other adult care communities. Contact your state’s ombudsman’s office if your loved one was taken advantage of in one of these communities.
Contact the financial institution: Contact the bank, credit card company, or other financial company to alert them to what happened and see what steps need to be taken.
Hiring an attorney: If legal action is necessary, consider hiring an attorney or seeking other legal resources.
In conclusion, elder financial abuse is a serious issue that can devastate the finances of older adults. However, by understanding the signs of elder financial abuse, taking steps to protect your parents or other loved ones, and knowing what to do if abuse is suspected, you can help prevent financial exploitation and protect your loved ones.
This material was generated using artificial intelligence (ChatGPT) and edited by Kaleido Inc. from information derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.
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