May is National Elder Law Month and as the icons of our families being to age, it is important that we are vigilante so that bad actors do not swoop in to take advantage of their vulnerability. The US Census estimates that since 2010 the number of Americans 65-and-older has grown by 34.2% to over 13,787,044 people.[1] In fact, the first wave of Baby Boomers hit 65 years old in 2011 and many are now looking back on a decade of retirement.[2] However, an aging population also creates the potential for financial abuse by bad actors, and the National Council for Aging estimates that annual losses for such abuse is at least $36.5 Billion.[3] The good news is that you can take steps to prevent financial exploitation of your elderly loved ones and also recognize the signs of abuse.
Prevention should be your first goal, and as Benjamin Franklin famously advised “an ounce of prevention is worth a pound of cure.” It almost goes without saying, but talk to your mom, dad or other elderly loved ones. Regular communication about their life can help you detect the early warning signs of abuse. The Department of Justice has identified the following red flags you should be looking out for when it comes to the older adult’s living situation, care, and finances:
- Sudden changes in bank accounts or banking practices, including an unexplained withdrawal of large sums of money
- A person accompanying them to financial institutions, health care visits, or other appointments
- The inclusion of additional names on bank account(s) or credit card(s)
- Unauthorized ATM withdrawals
- Unexplained disappearance of funds or valuable possessions
- Provision of substandard care or bills left unpaid despite the availability of adequate financial resources
- Discovery of a forged signature for financial transactions or for the titles of their possessions
- Sudden appearance of previously uninvolved relatives claiming their rights to their property or possessions
- Unexplained sudden transfer of assets to a family member or someone outside the family
- Establishing services that are not necessary
- Their own account or report of financial exploitation[4]
You will also want to watch for signs of isolation, particularly in this post-COVID world which presents ample opportunities for isolation. Finally, be sure that your loved one has estate planning in place and be on alert for changes in their will, trust, powers of attorney, or other financial documents.
Many people are reluctant to breach these subjects for various reasons, but it is crucial to overcome this reluctance because the alternative can be protracted legal battles where family legacies are squandered on attorney fees. Even worse, sometimes the bad actor has absconded with the money and is nowhere to be found.
Ultimately, involved family members can deter bad actors who fear discovery. So in honor of National Elder Law Month get in touch with your elderly loved ones and see how they are doing.