Elder abuse may take many forms. As a team of caring nursing home abuse lawyers, we have seen all kinds of shocking situations, especially when it comes to managing the financial affairs of the elderly. If money is involved, problems take on a greater importance due to the financial motivation of the abuser.
It helps to know more about the top ten risk factors for elder financial exploitation, so you may be able to recognize the problems if you have them and deal appropriately with them if you are taking care of others.
Here are ten influential factors that may increase the risk of elder financial exploitation.
1. Cognitive Decline or Dementia
The number one problem comes from cognitive decline, such as a person who has Alzheimer’s or dementia. This problem is challenging because it does not present itself with full force all at once. Instead, it develops over time. This means the person showing symptoms may not be aware of the changes.
Things that can happen include forgetting to do things (such as turning off the stove), not being able to handle finances (such as paying monthly bills), and getting irritable when help is offered.
2. Dependence on Caregivers
Caregivers, both paid and unpaid, are a significant part of elder care. Some who are not paid give support for many years to the person in need.
The close relationships with caregivers may open the door to abuse if there is inadequate supervision of financial matters by a qualified third-party, such as a lawyer or an estate planner.
3. Poor Physical Health or Disability
Poor physical health and disability may block the management of financial affairs. A true problem is the forced neglect of these affairs due to the person’s inability to do anything about them.
In severe cases, a loving person (family member or close friend) may apply to the court to become the person’s guardian. The process is arduous; however, if the caregiver is sincere, it may be in the best interests of the person they are trying to help.
4. Recent Loss of a Spouse or Loved One
The loss of a spouse or loved one is devastating for anyone. Not only do you miss the person, but you also may not have the skills to handle your financial affairs alone. This sad event may be especially devastating to an elderly person.
Women, on average, live longer than men, so there are more elderly widows than widowers in general. Some organize their lives with a significant other to share responsibilities. It is common for a surviving spouse to lack the skills regarding things that were handled by their spouse while still alive.
One way to manage these circumstances is to work with a trusted, licensed financial advisor.
5. Limited Financial Literacy
When a person has limited financial literacy, they may be more likely to become a victim of financial abuse.
It is wise for everyone to learn about financial things before they get too old to learn them. Working with a qualified estate planner and financial advisor helps educate a person and plan for this later stage of life well in advance.
6. Trusting Nature or Emotional Vulnerability
Cognitive problems and memory loss can impact judgment and create emotional vulnerabilities. Living alone can make a person more likely to respond to attention from strangers who appear to show kindness.
Family members may also be a source of elder financial abuse. They may take advantage of a diminished older person’s inability to understand financial documents and get them to sign things that they do not understand.
When there is a considerable estate involved, family members may fight over the resources.
7. Social Isolation or Loneliness
When an aging person lives alone, they may suffer from social isolation and loneliness. This makes them more likely to be manipulated by someone who wishes to take advantage of them.
What may appear to be friendliness and help to an older person might be a thinly disguised case of financial abuse. Confidence schemes are used by bad actors to manipulate the elderly into revealing valuable personal information so that their finances are vulnerable and they may become victims of identity theft.
8. Uncontrolled Access to Financial Accounts
If an elderly person has unlimited access to financial accounts, this may increase the risk of exploitation. Fraudsters who prey upon the elderly may be able to trick them into doing something that a trusted financial advisor or estate lawyer would not allow.
Having joint accounts that require a second person to review and authorize the transactions might be the solution when the elderly person is mentally capable but can benefit from support.
9. Substance Abuse
Substance abuse by either an elder, a care system (such as a nursing home), or a caregiver may be a serious problem. Overprescribing and overuse of medications are common issues.
Elders who are not supervised properly may take too many meds and become addicted to things like painkillers and sleep aids.
Caregivers who have a drug problem or who are exploiting the elder person may steal the meds to take them or to sell them. Caregivers and nursing home systems may also give too many meds to keep a patient under control and in a state of nearly permanent sedation.
Conducting regular medication reviews by a qualified physician and pharmacist can help reduce the chances of substance abuse.
10. Lack of Oversight or Monitoring of Finances
Monitoring an elderly person’s finances is part of holistic care. It is best to have a plan to manage an elderly person’s financial affairs that they can agree to if they have the competent ability to do so.
If possible, set up the structure to manage finances properly while the elderly person is still of sound mind. Work with professionals such as an accountant and estate planner. Use a qualified attorney to set up the structure.
How to Get Help
If you suspect elder abuse related to financial exploitation, contact your state’s adult protective services (APS) department, your local police department, and seek legal counsel from a qualified elder abuse attorney or nursing home abuse lawyer.
You may also contact the national Elder Fraud hotline at 1-833-372-8311 for help with financial scams that target the elderly.
