As loved ones near the end of their life, they become more vulnerable to financial exploitation. Unfortunately, some individuals might try to take advantage of this vulnerability to gain access to assets or influence estate planning decisions.
You can protect your family member from harm by recognizing the telltale signs of elder financial exploitation.
Changes in estate planning documents
One of the most significant signs of financial exploitation involves sudden or unexpected changes to estate planning documents. This could include the addition of new beneficiaries, alterations to a will or trust or changes in power of attorney designations. These modifications might favor one individual over others or even give control of assets to someone outside the family. It is important to question any changes that do not align with the person’s previous end-of-life wishes or that occur without a clear explanation.
Unexplained financial transactions
Unusual or unexplained financial activity can be another indication of exploitation. This might include large withdrawals from bank accounts, sudden transfers of funds or the sale of valuable assets without your loved one’s knowledge or consent. Pay close attention to any new accounts that open in your family member’s name or significant changes in their financial behavior. Frequent gifts or loans to a specific individual should also raise concerns.
Isolation from family and friends
Exploitive behavior often involves isolating an elderly person from their loved ones. This could be at the hands of a caregiver, a new acquaintance or even a family member who restricts access to the elderly individual. The isolation can prevent others from noticing the exploitation or questioning suspicious activities. Be alert if an elderly loved one suddenly becomes distant, cancels plans with family or seems overly reliant on a particular individual.
Studies suggest that one in 10 older Americans experience elder abuse. Financial exploitation is a prime example of this type of abuse, and it can certainly happen in your own family. This is a sensitive time when it is more important than ever to take proactive steps that will safeguard your family member’s financial well-being.