Identifying and Dealing With Financial Abuse of the Elderly

It is not uncommon for the elderly to become victims of financial abuse. They may be losing — or already have lost — some of their cognitive ability, and their judgment may be clouded. The perpetrator can be anyone from a stranger to a friend, caretaker, relative, or trusted financial advisor.

Family Members Often the Culprits

Financial abuse of the elderly knows no boundaries. It can occur when someone steals or embezzles money, Social Security checks, or other property from an older person. It can be as simple as taking money from a wallet or manipulating a victim to turn over or sell personal property or belongings. In many cases, the financial abuse is done by someone the victim knows and trusts. Family members commit more than half of the crimes of financial abuse of the elderly, according to the National Association of Adult Protective Services Administrators.

Sometimes the abuser has gambling, substance abuse, or financial problems. Often the elderly are afraid to report this abuse, fearing that their children will consider them too demanding or unfit to handle their finances. They may fear losing an important part of their independence and can be embarrassed that they can’t handle the situation themselves.  They also do not want to report these crimes, because they are afraid of alienating the perpetrator by getting them in more trouble.

Americans over the age of 55 control 70 percent of the nation’s wealth. Many of the elderly do not realize the value of their assets and how those assets make them vulnerable. A recent FBI investigation found that fraudulent telemarketers were directing nearly 80 percent of their calls to seniors; the elderly are often dependent on others for help, and a “helpful” voice at the end of the telephone line can exert a significant influence.

How to Detect Financial Abuse and What to Do About It

There are many signs to watch for in detecting financial abuse of the elderly. Someone could force an elderly person to sell or give away property or to sign a power of attorney. Valuable objects may start to disappear. There may be unusual activity in bank accounts, such as sudden withdrawals of large amounts, many checks made out to cash, and low bank balances when there should be plenty of available funds. A new “best friend” or “sweetheart” might appear on the scene. Signatures on checks do not resemble the older person’s signature. A name may be added to an older person’s bank account.

There are several ways to prevent this financial abuse. One way is to have several family members be involved with the older person. Encourage the elderly to become involved with the community, senior centers, or religious groups, which all can provide a strong support system. Take advantage of direct deposit of income checks, including Social Security and dividends. Carefully screen and verify caregivers’ references and do a thorough background check.

There are estimates that only one in six cases of financial abuse is ever reported. Any person who suspects that financial abuse has occurred should report it either to her local police department or to a trusted social worker or adult child, assuming the child is not also the abuser. When in doubt, err on the side of caution. Financial abuse can continue and can escalate if there is no intervention. Reporting the abuse and intervening in time can save the assets, health, and dignity of the elderly.

Orphans’ Court Remedy

Pennsylvania has a section of the County Court Structure, known as the Orphans’ Court, that serves as the venue for litigation associated with estates, trusts, guardianships, powers of attorney etc.   The Orphans’ Court is where you would bring a case dealing with elder financial abuse.

Keep in mind that legal actions taken to stem the tide of financial abuse of the elderly can be very complex and time consuming.  A remedy might not be achieved over night, but it will be well worth it in the end.  There might be hundreds of thousands of dollars at stake so legal counsel is almost a necessity in these cases.  It is likely that the person or people committing the financial abuse will be represented by counsel and will defend against actions taken in the Probate/Orphans’ court in Pennsylvania.

Our firm offers a dedicated Orphans’ Court litigation team of experienced attorneys.  The Orphans’ Court attorneys handle these financial abuse cases regularly and can assist with any issues you might come across when reviewing your loved one’s needs.  The Orphans’ Court cases are very unique so be sure to locate an attorney who has experience handling these specific types of issues.

For assistance dealing with a Financial Elder Abuse case in Pennsylvania, please contact Douglas L. Kaune, esquire at 610 933 8069 or email him at dkaune@utbf.com. Unruh, Turner, Burke & Frees, P.C. is a full service law firm which has three convenient office locations in Phoenixville, West Chester and Paoli, Pennsylvania.  The firm primarily services clients in Chester, Montgomery, Delaware, Philadelphia, Bucks and Berks Counties, but can represent clients throughout Pennsylvania.