1. A rogue caregiver or abusive family member takes an elderly parent hostage. Hackard advises calling the trusted contact person on file to discuss drawing up a temporary restraining order against the offending party to prevent any further disbursement of funds. “By law, the advisor has to make a reasonable effort to contact the trusted contact that’s listed on their client’s paperwork when they feel a senior is at risk,” said Hackard.
Finra Rule 4512 requires making reasonable efforts to obtain the name of and contact information for a trusted contact person for a customer’s account.
2. An addicted adult child or con artist home health aide obtains power of attorney. Hackard recommends that financial advisors involve other family members who can monitor their elderly client’s accounts.
“Without making the person who is monitoring a signatory, financial advisors are in a position to gain permission from their aging client to provide access to viewing of their accounts,” said Hackard.
3. An elderly client has no trusted family members and retirement assets are being exploited. Build a record with the police. “Get involved with local organizations that are monitoring elder abuse,” said Hackard. “Industries other than law enforcement that may hold workshops and lectures, which financial advisors can attend, include banks, private investigators, veteran's organizations and estate litigators.”