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Elder Financial Abuse: How to Spot the Signs and Protect Your Estate

Elder financial abuse is a serious issue that impacts many older adults, often at the hands of people they know and trust. Whether it is through scams, manipulation, or outright exploitation, this type of abuse can drain a lifetime of savings and cause emotional hardship. Knowing the warning signs and understanding how to protect yourself or a loved one is essential for long-term financial security.

What Elder Financial Abuse Looks Like

Elder financial abuse can take many different forms, including:

  • Scams and fraud: From phone scams to phishing emails, scammers frequently target older adults with deceptive offers or by asking for financial information.
  • Exploitation by family or caregivers: Unfortunately, financial abuse sometimes comes from those closest to the elder. This can include unauthorized withdrawals, misusing a power of attorney, or pressuring the elder to change their will or estate plan.
  • Predatory financial products: Some financial advisors or companies may push unsuitable investments or services that benefit them at the elder’s expense.

Signs to Watch For

Spotting financial abuse can be tricky, especially if the elder feels ashamed or does not realize what is happening. Some red flags include:

  • Unexplained withdrawals or large financial transfers
  • Missing property or assets
  • Sudden changes to estate planning documents, such as a will, trust, or power of attorney
  • New “friends” or caregivers who have too much control over finances
  • The elder seems anxious, fearful, or secretive when discussing money

How to Prevent Elder Financial Abuse

Taking steps to prevent financial abuse before it happens can make a big difference. Estate planning tools and careful monitoring can help protect your or your loved one’s assets. Here are some key strategies:

  1. Set Up a Durable Power of Attorney (POA)

A durable POA lets you choose someone to manage financial matters if you are no longer able to. It is important to select someone you trust completely. You might also consider appointing a professional fiduciary.

  1. Create a Trust

A properly designed trust can safeguard your assets from misuse and clearly outline how they should be managed and distributed. A professional trustee can ensure that your funds are handled according to your wishes.

  1. Monitor Accounts and Credit

Regularly reviewing financial statements and credit reports can help you spot any suspicious activity. Setting up alerts for unusual transactions is another helpful way to stay on top of things.

  1. Limit Access to Financial Information

Be selective about who has access to your financial documents and personal information. Make sure important details, like account numbers and passwords, are securely stored and shared only with trusted individuals.

  1. Consult an Estate Planning Attorney

Working with an experienced attorney can help you put protections in place that reduce the risk of financial abuse. We can also help you review and update your estate plan regularly to make sure everything is in order. This yearly meeting can help the client spot financial abuse.

What to Do If You Suspect Financial Abuse

If you suspect someone is being financially abused, it is important to act fast. You can report your concerns to Adult Protective Services (APS) or reach out for legal help to stop any ongoing exploitation.

By taking steps to build strong financial protections now, you can gain peace of mind and protect your legacy. At Wilson Law, we are committed to helping older adults and their families create estate plans that safeguard against financial abuse. Contact us today at 866-603-5976 or fill out our online contact form to see how we can assist you.