๐๐ฟ๐ฒ ๐ฌ๐ผ๐ ๐ก๐ฒ๐ ๐? ๐๐ป ๐๐น๐ฑ๐ฒ๐ฟ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐๐ฏ๐๐๐ฒ ๐ช๐ฎ๐ฟ๐ป๐ถ๐ป๐ด
On the rise in financial exploitation of the elderly: why itโs happening and what to do to avoid it happening to your loved ones
I avoid fear-based content like the COVID-19 virus. โMake a will so your family wonโt fightโ, โhave a trust so your kids wonโt go broke by 40โ and the like irk me.
But I share this due to a distressing rise in elder financial abuse cases Iโve encountered this year. This May alone, Iโve advised on two cases of it, and just received a new enquiry.
This rise is in line with recent reports here (www.shorturl.at/XsISs and www.shorturl.at/ngQyh) and abroad (www.shorturl.at/OBuSD).
๐ช๐ต๐ฎ๐โ๐ ๐๐น๐ฑ๐ฒ๐ฟ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐๐ฏ๐๐๐ฒ?
It is the exploitation of an older personโs assets, often by theft, fraud or coercion, including misuse of powers of attorney, coercing the signing away of property or outright theft. Family โ most often adult children or spouses โ are the perpetrators in most cases.
A case Iโm advising on highlights the complexity involved. My client is a lady in her 70s with early-stage dementia (but still with mental capacity).
Her daughter, who lives abroad, began getting anxious calls from her about her fears of eviction (she refused to say why). On a recent visit, she discovered her brotherโs use of her motherโs ATM cards to steal from her. He also nearly convinced her to sign over her home.
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Despite clear financial abuse, my client hesitates to act, out of love for her son. Such guilt, denial, and fear of shame or harm to the abuser โ often prevent detection or legal recourse.
๐ช๐ต๐โ๐ ๐๐ ๐๐ฎ๐ฝ๐ฝ๐ฒ๐ป๐ถ๐ป๐ด?
โข Demographic shifts: a fast-ageing population, a disproportionate share of wealth with the elderly, the recent, rapid rise in property value and worsening in employability and the economy are key factors
โข Cognitive decline & Isolation: Conditions like dementia make elders more susceptible to undue influence and manipulation; many live alone or are wholly- dependent on caregivers, amplifying vulnerability further
๐ช๐ต๐ฎ๐ ๐๐ผ ๐๐ผ?
How can we avoid this happening to our own loved ones?
Early detection and ongoing vigilance are key. Here are two practical steps:
1. Monitor finances: Help elderly parents review bank statements and credit card statements for unusual activity. Watch over access and key documents โ ATM cards, wills, title deeds, etc.
Encourage honest discussions with them on financial matters and watch out for red flags such as sudden changes in spending, new โfriendsโ or unexplained withdrawals.
2. Establish safeguards: Use instruments like Lasting Powers of Attorney (LPA), but carefully, and consider checks and balances if the situation calls for it.
My article, โLessons from Stan Lee & Buzz Aldrin : The Importance of Safeguards in Lasting Powers of Attorneyโ highlights some key safeguards (www.shorturl.at/PPOws).
I hope this raises awareness of the need for early detection, vigilance and safeguards. Elder financial abuse is a fast-growing crisis โ it can happen in any family โ mine and yours included. Take heed.
