Protecting Older Adults from Financial Abuse and Exploitation
In 2023, over 101,000 adults over 60 fell victim to financial abuse and scams, resulting in about $3.4 billion in stolen funds. The individuals committing these offenses are strangers and people the victims trust. You can implement several strategies to protect yourself and your loved ones from these monetary losses and the psychological distress that results. Your Cincinnati estate planning lawyer can offer guidance and suggest legal tools to protect your assets.
Financial Exploitation and Its Impacts
Financial exploitation and abuse involves the unauthorized use of or access to a person’s funds, property, or assets. Some abusers are online criminals who gain entry into a victim’s financial accounts or protected information. They can also include friends or family members who take advantage of someone’s trust to steal or control their finances for personal use.
Older adults are popular targets for online criminals and malicious family members alike. Perceived vulnerabilities like declining cognitive capacity, isolation from others, and lack of familiarity with digital tools can make these individuals susceptible to manipulation and deception. More specifically, these tactics commonly involve
- Outright theft
- Complex investment schemes
- Telemarketing and internet fraud
- Sweepstakes and lottery scams
- Unauthorized control of assets
Financial exploitation of older adults is a prevalent problem in the U.S. The National Council on Aging reports that 10 percent of people over 60 experience abuse, some of which is financial. Unfortunately, only one in 14 abuse cases ever get reported, suggesting that the 10 percent figure is a gross underestimation.
Signs That You Or a Loved One is Being Victimized
Lawyers in family law and estate planning see financial abuse quite often, and they can detect the red flags of exploitation often before their clients do. Here are some indicators of economic mistreatment to watch for:
- Adjustments to a Will, Trust, or other estate plans without an apparent reason
- Sudden changes in the person’s financial situation or banking practices
- Bounced checks or bill left unpaid
- Unexplained transfers or withdrawals from bank accounts
- New acquaintances or friends showing interest in the person’s finances
- Displaying distress or anxiety when asked about money or finances
Recognizing these signs can safeguard you and your loved ones even if you don’t suspect financial abuse or criminal activity. Putting legal safeguards in place, with advice from an asset or real estate expert close to home can protect your family from future exploitation.
Legal Tools and Strategies to Protect You and Your Family
Whether or not you think financial abuse is occurring, it’s wise to get advice regarding estate planning matters to protect what you’ve worked hard to build up. Your attorney will likely suggest the following mechanisms:
- A guardianship or conservatorship involves an individual you appoint to oversee monetary transactions, bank transfers, and other financial matters regarding your estate. A guardianship takes effect once you lose the legal capacity to make your own decisions.
- Power of attorney (POA) gives another person the authority to manage your estate and make legal decisions on your behalf should you become uncommunicative or incapacitated. The POA ceases upon your death.
- A Trust allows you to divert your assets and resources to the administration of a trusted family member or other individual. This tool ensures your finances are managed according to your wishes without the risk of abuse.
If you care for an older adult, here’s what you can do to protect them further from financial crimes or mistreatment:
- Review bank statements and records with them to detect unusual activity.
- Encourage open discussions about finances and avoid judgmental attitudes.
- Establish direct deposit for regular payments to prevent mail theft.
- Keep financial records, personal information, and account passwords safe from unauthorized access.
- Stay informed about the latest online and other scams targeting older adults.
Another crucial step is to consult a Cincinnati attorney focusing on probate issues and estate management for assistance. The experts at Donnellon, Donnellon & Miller understand how financial exploitation robs older adults of much-needed funds, causes psychological harm, and diminishes their independence. Contact us today to learn your options and what safeguards are in place.