Financial abuse of the elderly happens on a large scale across the world and recent data suggests that the main targets of financial abuse are those aged 65 and above.
Financial abuse takes many forms. Some typical examples might include:
- The misuse of a person’s funds or assets
- Excessive gifts
- Not keeping appropriate records
- Mixing of money
- Not acting in a person’s best interests
- Unpaid bills (in particular, care home fees)
- Opening a credit card account or making loan applications in the person’s name
- High risk investments
If you are close to an elderly person, then you should look out for signs of financial abuse. You may notice that individuals who were not previously involved with the person have suddenly inserted themselves into their life to the exclusion of others. This is often a red flag when it comes to spotting financial abuse.
Abuse can have an impact both during the elderly person’s lifetime (where they may have their assets stolen by the abuser) and after their death (for example, if the elderly person was pressured into making a new Will which benefits the abuser.)
Sadly, all too often, it is often family members who commit financial abuse. A once trusted child may become greedy and decide that he or she should benefit more than their siblings from the parent’s estate or indeed, that they are entitled to receive their inheritance in advance.
Equally, however, those in positions of trust, such as a carer, may see the elderly person as an easy target. Anyone with a position of influence over the elderly person has the potential to financially abuse them, especially if they can control and/or access the elderly person’s finances.
What steps can be taken to avoid financial abuse?
Financial abuse can still occur if there is a Lasting Power of Attorney (LPA) or a deputyship order in place. LPA’s remain, however, important tools in ensuring that a person’s property and finances are dealt with in accordance with their wishes if they lose capacity to manage their own affairs. Educating attorneys about their powers and responsibilities under an LPA is an important way to prevent financial abuse. Often attorneys misunderstand their position and may unwittingly commit financial abuse as a result.
It is important to ensure that the elderly person does not become isolated or overly reliant on one person (who could be or become their abuser). Talking with the elderly person and educating them on risk and scams could help to avoid future abuse or help you spot existing abuse. Get to know who is on their team of care and service providers and become familiar with their financial and planning documents.
Perhaps most importantly, if you suspect financial abuse of an elderly person make sure that you report it as soon as possible. Depending on the nature of the abuse you could report it to the Police, the elderly person’s GP or Adult Social Services. If you are unsure, you can call helplines such as Action on Elder Abuse (0808 808 8141) and Age UK (0800 678 1174). Sometimes, you may need a solicitor to advise and assist in recovering the elderly person’s assets from the abuser.
If you require any further information, please contact me on 01283 214231 or e-mail k.baldock-grimes@timms-law.com.
