Financial Abuse of the Elderly Rampant

Added: (Wed Jan 06 2010)

Pressbox (Press Release) - It’s easy to pull a fast one on an elderly person who might not be very aware of their surroundings. Financial abuse of older people is on the rise and it is considered to be one of the easiest ways to hoodwink seniors.

There are a few instances where a senior should consider getting a financial power of attorney that allows their appointed agent to make financial decisions based on their behalf. These financial powers of attorney are one of the easiest ways to perpetrate financial abuse of the elderly should the choice of agent be unethical or unscrupulous.

“Generally speaking, it is in the best interests of the senior to have the agent granted a power of attorney based on two qualified medical doctors stating in writing that the elderly person is mentally incompetent and not able to make sound financial decisions. This is not something the doctor just sits down and writes. There are significant consequences if the doctor “fakes” it, as s/he is declaring the person to be incompetent under penalty of perjury,” said Deborah Barron, of the Barron Law Office in Sacramento, California.

While this method is not without its drawbacks, it does make it harder for someone with the wrong intentions to exploit a senior. Not too many people want to try and get two doctors involved to be able to carry out a financial scam. “On the other hand, many con artists (including family) have simply asked the elder to execute a new power of attorney; one that revokes all prior powers and hands authority over to the person pressuring them for the document,” added Barron.

If the person is outside the family, such as an attendant at a nursing home, it is harder to accomplish something like this without being caught. Seniors that have the involvement of family and friends in their lives are better protected than those living on their own. However, there are still things that can be done to protect elders at risk.

Make a trip to the bank where a senior’s funds are invested and take the time to show them the power of attorney and why it is needed, and that the ultimate goal of the power of attorney is to protect the senior’s finances. It helps to mention that two medical doctors have confirmed the senior isn’t able to manage money any longer. “The main thing the bank needs to do to assist in protecting the senior’s bank account and other financial assets is to flag any unusual activity or substantial withdrawals,” Barron explained.

“In some states, and California is one of them, there is a law that makes all bank employees a ‘mandated reporter,’ which means bank employees must report any suspicious activity to the police. In states where this law exists, bank employees get training to be able to spot indications of financial exploitation,” stated Deborah Barron, of the Barron Law Office in Sacramento, California.

If financial exploitation is suspected, speak to a skilled attorney to find out what can be done to handle this matter. If it’s not too late, the attorney will assist in drafting a valid power of attorney that will reduce the likelihood of financial abuse.