The Wise and the Wary
Who can you trust? Deb hears this question over and over again in her professional practice as an elder law attorney and a fee-only, holistic financial planner. Let Deb teach you how to protect yourself and your assets from those who might not have your best interests at heart.
Posted 11/18/2009
Elder Abuse: Financial Exploitation
Watch for telltale signs
By Deborah Hoskins, JD, CFP
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Abusers are family members, advisors, or caregivers who use their position of trust to steal. They might just skim a little here or there, or they might quickly bleed all accounts dry. Some abusers intentionally position themselves for the kill by appearing charming or compassionate. Others may, over time, just succumb to the temptation to larceny. “After all,” they may rationalize, “since I was just going to inherit it all anyway after Mom dies, I may as well take a little now since I’m behind on the bills.”
If the victim ever does get wind of the theft, he or she is often too embarrassed to tell anyone. This form of abuse has one of the highest rates of nonreportage of all crimes.
Telltale signs of financial exploitation
- Unpaid or overdue bills
- Utility shutoff
- Excessive banking (frequent ATM withdrawals)
- Excessive credit card activity, with no goods or services to show for it
- Disparity between income/assets and lifestyle
- Evasiveness or confusion over account depletion
- Constant companionship by a new friend
- Increased social isolation or sudden estrangement from family and friends
- Changes in wills or powers of attorney in favor of the new friend
By Deborah Hoskins, JD, CFP
The Wise and the Wary Blog
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Elder Abuse: Financial Exploitation
I have a half-brother (#1) and a sister (#2) who both have Power of Attorney for my step-father. About 4 months ago I discovered that #1 was writing checks out of Dad's checking account, signing his own name without the required POA initials.
That in it's self was no big deal, but none of the checks were to the benefit of Dad. More investigating dug up a recent bank statement that was FULL of canceled checks written by #1, obviously written without any benefit to Dad.
CONFRONTATION: After notifying #2 about my discovery, she insisted that further investigation and punishment be only interfamily. I agreed, but with conditions. If further investigation (which would be quite easy for #2 with her POA)showed more of what I had discovered, she/we would impose repayment, take away #1's POA, and make it impossible for Dad to be able to give #1 any money on his own (Conservatorship). #2 COMPLETELY DROPPED THE BALL, COULDN'T BRING HERSELF TO CONFRONT #1, AND THRUST ME INTO "PLAN B".
PLAN B: I confronted #1 with my findings, each of which he vehmiantly denied. I packed up my investigation materials and headed for the local police (as I had promised #2, if she failed at Plan A). I also called the bank and wondered why they were cashing checks written by #1, without the POA inscription.
That let #1 know that I was serious, but the police knocking on his door, really firmed it up.
PROBLEM 1: Neither #2 nor Dad would play along with the police, so the investigation ground to a halt.
I hired an attorney to discuss my options, and decided to ask for a medical opinion from the family doctor (which indicated that Dad had Alzheimers, and was easily confused. That got me a Conservator/Guardian hearing in the near future. That would protect Dad's estate from #1 and from himself.
#2 continues to be uncooperative and refuses to do anything "official", like pressuring the authorities to move ahead with prosecuting #1.
This all looks like a crime that will cost Dad an amount of money in the low 6 figures. BUT THE LOCAL COUNTY ATTORNEY REFUSES TO MOVE FORWARD WITH THE CASE. Please, any suggestions will be appreciated.