Most families with victimized elders could readily add to the list of the ways elders can be financially exploited. Vigilance helps. Here are some ways you can remain alert:
• Be very careful and take precaution when hiring caregivers. Simply hiring a caregiver company is not an insurance policy against wrongdoing.
• Watch your elder’s bank accounts—particularly withdrawal activity or changes in accounts. Sometimes the horse is out the barn door before you discover bank transfers, but late is still better than never (or a year later).
• Be careful and inquiring if you hear that your elder has been making frequent trips to the bank.
• Be vigilant about watching your elder’s mail. We have seen situations where financial information is hidden from the view of the elder and his or her relatives. Beware—this is a sign of great danger. Some financial advisors believe that an elder’s credit report should be ordered periodically, reasoning that a questionable report could be a useful “canary in the coal mine.” We have also seen cases where perpetrators cashed Social Security checks belonging to their victim. Accordingly, direct deposit of Social Security, retirement, and dividend checks provides some distance between an abuser and your elder’s money.
• Review receipts from vendors (grocery stores, pharmacies, Costco, etc.) for goods purchased for your elderly relative. We have seen multiples cases in which wrongdoing was first discovered by this kind of review. A $350 receipt from the local grocery store showing a $200 cash withdrawal can make even the most oblivious family member suspicious.
• Watch for service scams. New heaters, air conditioners, garbage disposals or lawn irrigation systems sold at an excessively high premium are not unusual.
• Reverse mortgages can be a blessing or a curse. They may provide a large lump sum payment or a stable, predictable monthly income to senior adults, but money coming in from a reverse mortgage may also be a large and tempting “cookie jar” for unscrupulous caretakers or relatives. More than once I have seen reverse mortgages paid to vulnerable senior adults with questionable capacity, and the existence of a reverse mortgage often isn’t discovered by a senior’s family until the senior has passed away.
Misuse Of Powers Of Attorney
Durable powers of attorney can be a potent legal vehicle for ensuring a senior adult’s health, legal and financial well-being is in the hands of a trusted agent. If used with prudence by trusted family members or agents, these powers provide legal protection when and if the senior becomes incapacitated or incompetent. When exercised appropriately, such powers are an unfettered blessing. If misused, however, they can destroy a lifetime of planning.