It is estimated that financial exploitation of the elderly totals around $2.6 billion per year. Whether it is through physical frailty or the beginnings of cognitive decline, the elderly are often more vulnerable to financial exploitation. Be sure you know what to watch for and how to protect your loved one.
Signs that someone may be vulnerable to financial exploitation include a lack of memory about financial details or secrecy about finances, a sudden change of mood, physical frailty that leads to an increased need for help with daily activities from service providers, and a lack of family members or close friends who are close by to check in regularly. These warning signs mean that you should be more vigilant in watching for the following indicators:
- Sudden changes in bank accounts or unexplained frequent and/or large withdrawals of money;
- Sudden changes in a will or other financial documentation;
- Unexpected transactions involving real property, such as a reverse mortgage or a change in the way the property is titled;
- Unpaid bills or substandard care including lack of food in the house, despite the apparent availability of funds;
- Sudden appearance of previously uninvolved relatives or new friends;
- Involvement of caregiver who isolates patient or professes unusual affection;
- Unusual use of credit cards;
- Unexplained transfer of funds to a family member or stranger;
- Provision of services that aren’t necessary; and
- Missing possessions.
While most exploiters are family members, friends, neighbors or people in trusted positions, like caregivers, exploiters can also come disguised as home improvement fraudsters or take the form of promises of sweepstakes winnings or can’t-lose investment schemes.
What can you do if you suspect that a loved one has been the victim of financial exploitation? Take action as soon as possible. Your loved one may be under the spell of the exploiter, so he or she may express upset at your actions. In most cases, though, it is more important to risk upset and prevent against further loss to protect the future well-being of your loved one than it is to placate your loved one. You can:
- Call the police. Montgomery County has an Elder and Vulnerable Adult Task Force to prosecute those who commit such abuse;
- Call your county’s adult protective services agency. The report should be anonymous;
- Alert the financial institutions;
- Create an FTC identity theft report or file a fraud report with each of the credit reporting agencies.
If your loved one has executed a power of attorney and designated a trustworthy person as his or her financial agent, the power of attorney can be a valuable tool to freeze and/or move accounts and gather information about the extent of the loss. If there is no power of attorney, it is important to have your loved one visit a doctor to determine whether the loved one has capacity to execute a power of attorney.
In many cases, there will not be capacity to execute a power of attorney, so a guardianship proceeding may be necessary.
Catherine H. McQueen, Esq. has significant experience in helping protect the elderly against financial exploitation. If you believe that a loved one has been the victim of financial exploitation, contact Catherine H. McQueen, Esq. to discuss legal options to protect your loved one at firstname.lastname@example.org or 240-507-1718
ABOUT KATE MCQUEEN
Catherine H. “Kate” McQueen is a family lawyer and principal in Offit Kurman’s Bethesda office and is licensed to practice in Maryland, Virginia, and the District of Columbia. Ms. McQueen focuses her practice on the many legal issues that impact families, including all the issues arising out of a divorce, such as custody, child support, alimony, and other financial and property issues. She also has extensive experience in guardianship matters for children and incapacitated adults, including assisting clients in petitioning for guardianship, serving as court-appointed counsel for alleged disabled persons, and serving as court-appointed guardian for individuals when their family members or friends are unwilling or unable to do so.
ABOUT OFFIT KURMAN
Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 140 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our eleven offices serve individual and corporate clients in the Virginia, Washington, DC, Maryland, Delaware, Pennsylvania, New Jersey, and New York City regions. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.
You can connect with Offit Kurman via our Blog, Facebook, Twitter, Google+, YouTube, and LinkedIn pages. You can also sign up to receive Law Matters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.
MARYLAND | PENNSYLVANIA | VIRGINIA| NEW JERSEY | NEW YORK | DELAWARE | WASHINGTON, DC