Signs of Financial Elder Abuse

Elder abuse doesn’t have to be only physical or emotional. Financial exploitation is also a form of elder abuse — and it can come in many different forms. Most often committed by adult children, caregivers, and others who are close to the victim, statistics show that financial abuse affects one out of every 20 seniors. It’s important to be aware of the signs of financial elder abuse so you can be in the best position to help protect your loved one. 

What is Financial Elder Abuse?

Financial elder abuse is the exploitation of a senior’s monetary resources. While this type of abuse can be committed in a variety of ways, it usually involves taking advantage of the elderly person’s trust through trickery, deception, or fraud. Seniors can be subjected to financial abuse by family members, business associates, nursing home staff, caregivers, and sometimes even strangers who seek to gain control over the senior’s finances.   

Those who are most at risk of financial elder abuse are seniors with cognitive impairments, dementia, or Alzheimer’s. Risk factors can also include isolation, lack of a strong support system, and living alone. Although older adults with a high net worth may be more susceptible to financial abuse, it can affect seniors of all socioeconomic backgrounds. 

What are the Common Signs of Financial Elder Abuse?

Financial exploitation of a senior can be carried out by taking assets or property without permission, deceiving the older adult to gain access to their funds, or misusing a financial power of attorney. It can also occur if a caregiver withholds bills with the intent of keeping the money for themselves or if they provide substandard care, despite the senior having adequate resources. Other forms of financial elder abuse can include identity theft and tricking a senior into sending money through a scam or a fraudulent investment. 

Regardless of how it is perpetrated, common warning signs of financial elder abuse include the following: 

• Unusual financial activity
• Disappearance of funds or possessions
• Suspicious withdrawals
• Opening new accounts
• Sudden changes to wills or trusts
• Unpaid bills despite sufficient funds
• Sudden debt
• Missing assets or property
• Unexplained lavish purchases
• Discovery of forged signatures
• Unexplained credit card charges
• Sudden asset transfers 

Another common sign of financial elder abuse can include suspicious new “friends” or companions who seem to know a lot about the senior’s finances. The senior may be prevented from accessing their funds or confused about recent financial transactions. They might also be unable to explain certain activity on their accounts and appear anxious or fearful when discussing financial matters. 

What Should You Do if You Believe a Loved One Has Been Subjected to Financial Abuse?

If you believe an elderly loved one has been subjected to financial abuse, it’s important to talk with them about your concerns. Let them know you want to help and collect as much information as you can. Your loved one may need to reach out to their bank or financial institution to freeze their accounts if an unauthorized person has access to them. Assist your loved one with gathering evidence of all instances of financial abuse, including bank statements, canceled checks, and other documentation. Depending on the facts of the case, you may need to file a report with law enforcement or adult protective services.   

There are a number of proactive measures you can take to help protect an elderly family member from financial abuse. You might encourage your loved one to set up a living trust that would allow someone else to manage their finances in the event they become incapacitated. Similarly, a financial power of attorney can give a trusted person the authority to handle their financial affairs and business matters if they become ill. If none of these documents are in place, you can petition the court for a conservatorship if your loved one cannot make financial decisions on their own behalf. It’s best to consult with an experienced trusts and estates attorney to learn about the options that may be available in your loved one’s specific situation. 

Contact an Experienced Michigan Elder Law Attorney

Learning that an older loved one may be experiencing financial elder abuse can be emotionally overwhelming and stressful. In such cases, it’s essential to have a knowledgeable attorney by your side who can provide the legal assistance your family needs. We invite you to contact Estate Planning & Elder Law Services today to learn more about how we can help you and your loved one implement strategies to protect their finances. Our attorneys provide trusted counsel for a wide range of estate planning matters — and are committed to providing you and your family with the help you need.