Protecting Yourself and Your Family Against Elder Financial Abuse

Elder financial abuse is a serious and growing crime that costs victims an estimated $2.6 billion annually. Victims come from every socioeconomic group in the country – and the most common perpetrators are family members.

Children with drug addictions or financial problems prey on a parent because they know how to access that parent’s money – and because they know their parents are not likely to report the thefts even if discovered. The combination of familiarity, trust and access makes elder financial abuse particularly difficult to detect and prevent.

Older adults are especially vulnerable because they may rely on others to help manage their affairs, may be isolated from friends and community, or may be experiencing cognitive decline that makes it harder to recognize when something is wrong. A durable power of attorney – while essential – can also become a tool for abuse if given to the wrong person. Choose whoever you name in that document with great care.

The best protection is planning ahead while you are fully capable. A comprehensive estate plan with properly named agents and trustees, combined with open communication among family members, reduces the opportunities for financial exploitation. It also makes clear – in writing – what your wishes are, so that no single person has unchecked control over your finances.