Financial Abuse of the Elderly by Family Members

Serious illness or infirmity of a family member can bring out the best in people, but it can also bring out the worst. During the years I worked for a hospice in Cincinnati, Ohio, I saw both. I saw children and grandchildren and great-grandchildren come together to care for elderly relatives in need, and I saw people make great sacrifices to care for their loved ones.

But then there was Kevin (names have been changed to protect the privacy of my former clients), who lay dying of AIDS in his bedroom, while his relatives went into his basement and divvied up his camping gear amongst themselves without his permission. There was Sylvie, whose grandson lived with her and was supposed to be caring for her, but he got arrested one night for dealing drugs out of her home. There was Tony, whose extended family members, long estranged, came to visit and stole his collection of Disney figurines (which apparently was worth more than you might guess).

Each year, the elderly are swindled out of more than $2.6 billion dollars, and in more than half of all cases the swindlers are family members, friends, or neighbors. Some law enforcement officials suggest that due to the economic recession, the problem is getting worse.

What Is Financial Abuse?

Financial abuse of the elderly or disabled takes many forms, including but not limited to the following:

* Taking someone's property or money

* Using someone's property without permission

* Offering to buy property but not paying what it's really worth

* Forging a person's signature on checks or other documents

* Using a person's credit cards or ATM card without permission

* Pressuring a person into signing a will, durable power of attorney, or other legal documents that she doesn't understand or really want to sign

* Promising lifelong care in exchange for money or property and then not delivering

When Kevin's family took his camping gear and Tony's family took his Disney figurines, that was financial abuse. Sylvie's grandson was also abusing or taking advantage of her, living rent-free in her home and not providing the care he was supposed to be providing for her, and putting her at risk by dealing drugs out of her home. Police could have confiscated Sylvie's home and property since there were illegal drugs on the premises, but fortunately for her, they didn't.

In some cases, the abusers or swindlers may have drug or alcohol problems, like Sylvie's grandson. They may have gambling problems or other financial problems. They may have a history of a rocky relationship with the person they are taking advantage of or they may have even been estranged for a long time, like Tony and his family. In some cases, people are just greedy.

Why Is Mom at Risk?

The elderly and infirm are at risk for being swindled by family members or friends for a number of reasons. They are often isolated and lonely. If Dad always handled the finances and now he's gone, Mom may be unfamiliar with how things work. She may not even understand how much money she has. The elderly sometimes don't understand new technology, like how money can be transferred between accounts via the internet. They may not realize the value of things they own; for instance, Mom may not know Dad's old record collection is actually worth some money. And if Mom is physically or mentally impaired, if she is dependent on others for help, she is at increased risk.

Signs That Mom Is Being Swindled

The National Committee for the Prevention of Elder Abuse recommends watching out for the following signs that someone might be taking advantage of Mom:

* Belongings or property are missing

* Unexplained withdrawals from Mom's bank accounts

* Missing legal documents like Mom's will or the title to her house

* Mom no longer has bank statements or cancelled checks mailed to her home

* Suspicious signatures on checks or other financial documents

* Unpaid bills or shut off notices for utilities

* Relatives express excessive concern about how much money is being spent on Mom

* Mom or her caregivers give explanations about her finances that just don't make sense

* The care Mom is receiving is not commensurate with the size of her estate (for instance, Mom has significant savings but she's wearing worn out clothes and eating Ramen noodles every day)

What You Can Do

Encourage Mom to have her Social Security or other checks directly deposited into her bank account so she doesn't have much cash lying around the house. Suggest she consider securing valuables like jewelry and important legal documents in a safe deposit box.

Encourage Mom to consult an attorney or financial advisor before transferring property or giving large sums of money to anyone (including you). If you are helping Mom with her finances, keep her as involved as you can, depending of course on her abilities.

Encourage Mom to make a durable power of attorney, a legal document that states who she wants to handle her finances if she is unable to handle them herself. Mom can hire an attorney to draw up the papers for her or you can find the form online for free, but it's a good idea for her to have an attorney review the document before she signs it.

If Mom has a durable power of attorney but you feel she was coerced into signing it or if you feel the person she named to handle her finances is mishandling them, you can consult an attorney to find out how to go to court and ask a judge to appoint a different power of attorney.

If you believe your loved one has been a victim of elder financial abuse (or any other sort of abuse), you need to report it. If someone has stolen money or property from your loved one, you should notify the police. If you think your loved one is being taken advantage of by a family member or caregiver, you should also contact Adult Protective Services in your area. To locate Adult Protective Services in your area, call 1-800-677-1116.

Sources:

National Committee for the Prevention of Elder Abuse. www.preventelderabuse.org.

Elder Financial Protection Network. www.bewiseonline.org.

National Center on Elder Abuse. www.ncea.aoa.gov.