Introduction
When your parents reach a certain age, you may start worrying about how you will care for them. Although taking care of their physical health is paramount, it is also essential to consider their financial well-being. This includes shielding them from exploitation in the economic realm as they get older. Abuse of a senior's financial resources by a caregiver, neighbour, friend, or family member is an example of financial exploitation of the elderly. A study by the New York State Office of Children and Family Services found that over five million older adults in the United States fall victim to elder financial abuse annually.
What Makes Aging Parents Open to Financial Abuse?
Certain circumstances can increase the likelihood that an elderly parent will fall victim to financial exploitation. One way to protect parents and their property is to be aware of the risks they face. Few parents have open discussions about money with their adult children. Only about a third of U.S. seniors have talked to their kids about their retirement or death plans. Wills, estate plans, and powers of attorney for financial matters fall under this category of preparations. If no close relatives or friends live nearby, elderly parents may be more vulnerable to exploitation by strangers or caregivers. Problems may also arise as a result of physical illness or mental decline. When an older adult's mental capacity is low due to dementia or another condition, it can be easier for a caregiver or a stranger to persuade them to sign over assets or grant access to accounts without raising suspicions.
How to Protect Against Financial Elder Abuse
Two people can prevent elder financial abuse. When it comes to defence, the elder is always the first line of defence. However, criminals are more likely to target older adult who is unaware of their financial situation because many older adults suffer from specific ailments that impair their cognitive abilities. The elder's social circle, including those close to them, is another source of protection. If the older adult has significant assets and dementia, for example, they are a prime target for abuse.
How to Report Elder Financial Abuse
There are a few things you can do to get help for your parents if they become victims of elder financial abuse. Get as much data as you can before doing anything else. It is crucial to know the time, date, and location of the incident, the names of those involved, and any witnesses you need to know about your parent's health that may affect their ability to make sound judgments or remember things. Once the data has been collected, a report can be submitted to your state's Adult Protective Services agency. You can also file a complaint about financial abuse with your local district attorney. It is possible that elder financial abuse is defined as a specific crime in your state's statutes or that victims of financial abuse can pursue a civil case to recoup any losses they have sustained. Family members must take precautions to prevent elder financial abuse.
Keep Your Loved One Active
Your loved one will be less vulnerable to abuse if they have positive relationships with people in their life. Always keep in touch by calling or stopping by. Change is also significant. The O'Donnell Brain Institute found that regular exercise helps improve concentration and wakefulness, protecting against mental decline.
Talk To Your Loved One About Schemes And Scams
Warn your loved one to avoid giving out their credit card number over the phone. Assist them in developing secure passwords and instruct them to recognise phishing emails. If they ever feel threatened or pressured, tell them to talk to someone and reach out if they need help.
Consider A Power Of Attorney And A Revocable Trust
If a loved one loses mental capacity and cannot handle their financial affairs, a power of attorney can be used to give you or another person the authority to do so. Agents can be protected even further by designating co-agents in the document. A lawyer can also assist you in establishing a revocable trust, also known as a "living trust," to oversee and safeguard your family's financial assets.
Develop A Relationship With Caregivers
The sad truth is that the people who spend the most time with your elderly family member are also the most likely to commit financial crimes against them. That's why building rapport with the people taking care of your loved one is essential. Learn as much as possible about the caregiver's history, personality, and passions. Make an effort to connect on a personal level.
Conclusion
Unfortunately, elder financial abuse is all too common and is typically perpetrated by someone close to the victim, such as a family member or close friend. The victim and their loved ones can take precautions to avoid financial exploitation, but the perpetrators of such crimes often know who is closest to the victim and will do anything to avoid being caught. Any suspicion of elder financial abuse should prompt a call to the police and the state's protective services.
