Aging is something that happens to us all. If you have elderly relatives, then you likely want to ensure that they can enjoy their golden years peacefully.
Unfortunately, elderly people can be vulnerable to financial exploitation, and family members are their first line of defense. How can you tell if your elderly relative is being exploited financially, and what can you do to protect them?
What is the financial exploitation of elders?
Financial abuse can take many forms. Some individuals may gain access to an elderly person’s bank accounts, pressure them into changing estate plans or manipulate them into giving away assets. Scammers often target seniors with fraudulent investment opportunities or make deceptive phone calls posing as government agencies or fake charities. Even trusted individuals like caregivers or family members may manipulate elderly individuals into giving money away.
Recognizing the signs
Every case of exploitation is unique, but there are some common signs to look out for, including:
- Unexplained withdrawals or transfers from bank accounts.
- Sudden changes to wills, trusts or beneficiary designations.
- Bills going unpaid.
- Confusion about financial transactions.
- Isolation from family members or reluctance to discuss money.
As we age, we all experience some form of cognitive decline. Dementia and other health conditions make elderly individuals more susceptible to financial exploitation. Fortunately, some safeguards can be put in place.
How you can protect your loved one
The following estate planning tools can help protect your elderly relatives:
- Durable power of attorney: Appointing a trusted individual to manage finances can ensure responsible decision-making.
- Trusts: Placing assets in a properly structured trust can protect them from fraud and undue influence.
- Guardianship: In cases of diminished capacity, legal guardianship may be necessary to prevent financial abuse.
For more information on protecting your elderly relative from financial exploitation, it may help to seek some legal guidance.