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.

3. 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.
4. 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.
5. 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.
6. 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.
7. 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