When a loved one is aging, families often focus on that person’s well-being and ensuring they have appropriate care. Unfortunately, those years can also create opportunities for financial exploitation.
An elderly person may be pressured into changing their will, transferring property, adding someone to a bank account or giving money away to a relative or caregiver. Understanding the warning signs of financial abuse can help families act quickly before assets are lost or the issue becomes an inheritance dispute.
Protecting an inheritance from elder financial abuse
Massachusetts has laws in place to protect older adults from financial exploitation. Sadly, financial exploitation does not always become apparent until after the elderly person dies. Families may discover that substantial assets are missing or that the estate plan changed shortly before their loved one’s death.
It’s important to realize that not every unequal gift or unexpected inheritance is evidence of abuse. An older adult has the right to decide how to use and distribute their property. The problem occurs when there is evidence that a transaction resulted from fraud, coercion, misrepresentation or undue influence.
Undue influence can be particularly important in inheritance disputes. An older person may have the legal capacity to make a will or give away property. However, they are vulnerable to someone who exercises inappropriate influence over the person’s decisions. Undue influence may be grounds for invalidating a will.
Potential signs of financial abuse
To protect their older loved ones, families should pay attention to changes that are inconsistent with that person’s normal financial habits, such as:
- Large or unusual cash withdrawals
- Unexplained transfers
- Frequent overdrafts
- Adding a new co-signer or joint account holder
- A new friend, relative or caregiver taking an unusual interest in the older person’s finances
- Unexplained changes to a will, trust, beneficiary designation or power of attorney
- A third party speaking for the older adult or controlling access to family members
- Missing bank statements, checkbooks, credit cards, jewelry or other valuable property
If you suspect that a family member is being financially exploited, it’s important to take prompt action. If they are still living, protecting them from further financial abuse may be the immediate priority. If the person has died, it’s essential to contact a legal professional as soon as possible to help determine whether the circumstances warrant a will contest.
