Elder Financial Abuse: The Problem, The Signs, & Recommendations

Media Reportsanalyzed from 2010 reveal that elder financial abuse cost the elderly at least$2.9 billion annually. A report from the Government Accountability Officeasserts “The money that older adults lose in these cases is rarelyrecovered, and this loss can undermine both the health of older adults andtheir ability to support and care for themselves.” As a result, taxpayerspay the difference for housing and medical care once the exploited elder has nomore assets.

Now, the seniorpopulation is increasing making the problem worse. Unless adult protectiveservices gets better the nation will face an increase in public funds beingdrained. The bad news is that most of these pre-grave- robbing” crimes gounreported.

Thus, it is criticalfor people to be aware of signs of elder financial abuse. Family and friendsshould look out for the following signs:

• Large bank account withdrawals
• Missing items at home
• Forging of the elder’s signature
• Subscriptions to unnecessary services or goods
• Bizarre financial activity

Estate planningattorney Ryan Zenk suggests that families put a series of checks and balancesthat can deter theft. Below are his recommendations.

• Have multiple people under the power of attorney for oversight
• Get a guardian appointed
• Avoid joint ownership of bank accounts
• Create a trust to keep assets protected

See Carole Moore, How to Prevent Financial Abuse of Elderly Parents, Fox Business,  Mar. 20, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.