Category: Estate Planning

Financial Abuse – How to prevent it

By Beth A. McDaniel, JD, CELA

 

Aging parents, relatives, friends, and neighbors are all potential victims of financial abuse. Older adults are especially vulnerable due to consequences of the aging process (e.g., cognitive decline, poor physical health, and functional impairment).

Financial abuse of elders is universally recognized as a significant problem that is only going to get worse. Yet, according to the National Adult Protective Services Association, only one in 44 cases of such financial abuse is reported.

 

Here are some ways to help prevent financial abuse of your loved ones:

  1. Encourage continuous, close contact with multiple relatives and friends, and being as active as possible in local communities (e.g., religious organizations, civic organizations, clubs, and hobby groups).
  2. A durable power of attorney, to appoint an agent to assist with finances, and a health care power of attorney, to appoint an agent to assist with medical decisions, are essential. In addition, a revocable living trust can provide another layer of protection by preventing an abuser from accessing financial assets or selling real property.

These documents should be drafted, and regularly reviewed, by a trusted, competent attorney. These documents should also be discussed with trusted family members and friends.

  1. Autopayment of routine bills should be established whenever possible. This helps prevent a caregiver — or anyone else – from writing fraudulent checks and absconding funds. In addition, autopayment helps avoid late payments, late fees, and possible duplicate payments.
  2. Teach elders to not answer their phone if they do not recognize the number. Instead instruct them to have the caller leave a voicemail. Similarly, tell them to avoid responding to any email allegedly originating from a government agency or company threatening them with negative consequences if they do not provide their personal information or some type of payment (e.g., for back taxes or unpaid traffic fines). Inform them that these are phishing emails sent by scammers.
  3. Urge elders to take inventory of — and photograph — their valuables. Tell them that having a record of all their valuables is helpful if a caregiver, repair person, or other service person comes into their home and steals their property. Inform them that items such as jewelry can be easily taken and pawned or sold, and they might not realize for some time that these items were stolen. Let them know that an inventory is helpful for insurance claims.
  4. Encourage elders to develop a buddy system with neighbors who can keep an eye on them and their home. Instruct them to provide their buddies with contact information for their adult children or other responsible adults. This enables the buddies to contact someone if they believe something is amiss.
  5. Advise elders to contact the police if they suspect financial abuse, regardless of the perpetrator. Advise them that financial abuse is not just a civil matter, but also a crime.

 

For more information, or to schedule an appointment, please call 425-251-8880 or email info@bethmcdaniel.com

 

First Published: September 2022

Are you ready?

Not long ago an obituary in the Seattle Times caught my eye:

Mary Wechsler, prominent Seattle attorney and former president of the King County Bar Association, died of Amytrophic Lateral Sclerlosis (Lou Gehrig’s Disease) on January 21, 2011 at the age of 63.”

Although I don’t recall meeting Ms. Wechsler, I did recognize the photo included with her obituary.  Thus, I may have attended a meeting with her at some point or at least previously seen her photo in a local legal publication.  Ms. Wechsler’s obituary goes on to state all of Ms. Wechsler’s professional accomplishments and recognitions received during her impressive career, some of which I have achieved, but on a more modest, smaller scale (for example, although I have never served as the president of the King County Bar Association, I am presently the chair of the King County Bar Association Guardianship and Elder Law Section).  Thus, her death is a little close to home.  If it isn’t enough to lose such a bright star too soon, the following paragraph of her obituary caught my attention:

Mary was diagnosed with Amytrophic Lateral Sclerlosis in late 2009 and retired her law practice in April 2010.”

Thus, Ms. Wechsler passed away just over a year after her diagnosis and a mere nine months after her retirement.  Her death clearly came quick (perhaps she utilized Washington’s right to die laws, which is only speculation on my part and is clearly a topic for another blog).

It made me wonder, if I received a medical diagnosis which would ultimately be fatal, would I be ready to go?  Spiritual issues aside, my mind immediately goes to all of the matters that I want to get in order prior to my death including, but not limited to the following: better organizing my financial records; updated guardian provisions for my children in my Will; adequate life insurance, especially now that I have incurred the additional liability of a commercial building for my law practice; fully funding the revocable living trust that my husband and I created in 2000; an ethical Will for the benefit of my children , my way of expressing to them my values and wishes for their lives; a letter written to my nominated guardians in which I would express the values and opportunities I want my children to have prior to their obtaining the age of 18; and putting in writing my periodic thoughts regarding how I would like to be memorialized upon my death.

Those issues aside, am I ready should I become disabled?  In other words, do I have adequate disability insurance, long-term care insurance, powers of attorney, and a current health care directive?  Honestly, I would have to say that presently I do not.

As the cliché goes, the cobbler’s children are [often] without shoes.  In other words, believe it or not, it is possible for an estate planning attorney to have incomplete planning, clearly the case for me.  It is all too easy to table such important matters as life gets in the way.  Regardless; I want to be accountable to my family, clients, and friends.

Thus, please look for updates from me in future blogs as I move forward with putting these affairs in order.  That way, if the unthinkable happens, I will have done everything possible to not unduly burden my family and will hopefully leave few, if any, loose ends.  My hope is that you will be inspired to do the same in the process.