What Is Financial Elder Abuse?
Elder financial abuse occurs when someone improperly uses an older adult’s money or property. It is unfortunate that many abusers are not strangers but trusted family members. They might misuse bank accounts, pressure for large gifts, or influence seniors to sign over property. Financial elder abuse often overlaps with psychological abuse, such as manipulation and the exploitation of trust. Beck, Lenox & Stolzer Estate Planning and Elder Law, LLC, has seen its fair share of the above situations and educates on how to prevent financial elder abuse from family caregivers at every opportunity.
How Does Financial Abuse Begin?
According to ElderLawAnswers, elder financial abuse often starts after a major life event. A serious health diagnosis or the loss of a spouse or a serious health diagnosis may lead to a family member moving in to help. This is beneficial. However, it too often leads to small oversteps, emotional manipulation and abuse of trust. The caregiver may leverage their personal issues or make your elderly loved one feel guilty about their assistance.
Challenges with Family Financial Abuse
Elderly victims face unique challenges when the abuser is a family member. For one, cognitive decline can make them unaware of their financial situation. Another risk is that emotional dependence may prevent them from speaking out. Fear of losing their caregiver, being placed in a nursing home, or alienating family often leads to silence. No one wants to believe their child or trusted caregiver capable of abuse and so denial is often present.
Can We Prevent Elder Financial Abuse?
Preventing elder financial abuse requires a multi-faceted approach that includes education, vigilance and legal protections. First, educating seniors and their families about the common signs of financial exploitation can empower them to recognize and report suspicious activities early. Regularly reviewing bank statements and credit reports helps detect unauthorized transactions. Establishing legal safeguards, such as setting up a durable power of attorney with a trusted person, can provide oversight and prevent misuse of funds.
Staying connected with older adults and fostering open communication can also make it easier to spot and address potential abuse. Guardianship or conservatorship can protect those particularly vulnerable. However, a trustworthy guardian is vital.
What are Remedies for Elder Financial Abuse?
Healing the emotional and financial damage of elder abuse is a difficult task. However, there are many options you can pursue before committing to legal solutions.
- Restorative Justice: Attempt to repair harm with voluntary involvement from all parties. This approach aims to restore the elder’s financial stability and mend family relationships, where possible.
- Mediation: A mediator helps resolve the issue outside of court. Mediation can provide a safe space to challenge the abuser and reach a solution.
- Criminal Remedies: In severe cases, legal actions like restraining orders or police reports might be necessary. These measures can provide immediate protection and start the process of holding the abuser accountable.
- Civil Remedies: Lawsuits can recover lost property and compensate for emotional harm. If it comes to this, some legal services offer low-cost support.
Protect Your Loved Ones from Elder Abuse before It’s Too Late
Recovering damages after financial elder abuse can be difficult or sometimes impossible. The best way to deal with the danger is to prevent it from happening. A solid estate plan can place monthly limits on expenses and help detect abuse early.
If you’re ready to strengthen your estate plan, we’re here to help. Our Beck, Lenox & Stolzer estate planning attorneys can help shield you or your elderly loved ones from exploitation. Schedule a free phone consultation and get started today.
Key Takeaways
- Know the Signs: Recognize the signs of elder financial abuse to protect loved ones.
- Proactive Monitoring: Regularly check financial accounts and involve trusted third parties in elder care.
- Robust Estate Planning: Work with an elder law attorney to detect financial elder abuse.
- Consider Informal and Legal Remedies: Understand your restorative, mediative, criminal and civil options if elder abuse occurs.
Reference: ElderLawAnswers (May 8th, 2024) “Elder Financial Abuse by Family Caregivers”
