The injuries suffered by an older person from physical abuse or neglect are tragic, but there's a much less sensational and publicized form of elder abuse - financial exploitation - that can be equally devastating. When a relative or "friend" exploits an older person and manages to drain away savings and assets that have taken years to accumulate, from that point on, the elder's life style is severely diminished. Despite its devastating impact, financial exploitation seems to be the least understood of all forms of elder abuse. A review of the literature on elder abuse and neglect reveals that most books and articles spend little or no time on financial exploitation. In addition, most protective service agencies, which are charged with investigating financial abuse cases, do not adequately train their caseworkers to handle the problem. Usually, adult protective services (APS) caseworkers either are trained as social workers or come from other public service agencies that emphasize the caregiving or social services aspect of elder care. While this kind of background equips APS workers to deal with abuse or neglect cases, it does not provide them with expertise in investigating financial cases involving the transfer of monies and properties from incapacitated or vulnerable adults.
Finally, there is an overall reluctance to report financial exploitation. Elderly victims may fail to report either because of their own incapacity or because of the stigma they feel would be attached to their being identified as a victim. An older person may also be reluctant to inform on a relative or caregiver who is exploiting because of emotional or psychological attachment to the person. Professional service providers, such as bank personnel, attorneys and health care workers often fail to report such cases either because they don't know which agency to call or because they adhere to a policy of strict confidentiality with respect to their client's affairs.
How Do You Recognize Financial Exploitation?
While the definition of financial exploitation varies among the states, the one most commonly cited is illegal or improper use of an elder's or incapacitated adult's resources for profit or gain. (This definition comes from A Comprehensive Analysis State Policy Related to Elder Abuse, published by the American Public Welfare Association/National Association of State Units on Aging in July 1986.) Service professionals should check their local laws to determine the precise definition used in their county or state.
Although each case presents its own particular facts, exploitation tends to fall into predictable patterns. The common denominator is the existence of a relative, friend, or caregiver in whom the elder has placed confidence or trust. The delegation of financial authority to the exploiter may be done openly or come about more subtly. Below are three categories of elders who are especially vulnerable to financial abuse and the most typical exploitation scenarios:
* An elder who is physically dependent on a caregiver who isolates him or her from social and family contacts. Because of the isolation and physical dependence on the caregiver, the elder loses his or her free will and becomes powerless to say no. As long as this relationship continues in isolation, the victim (who otherwise may appear rational and lucid) may even ratify the exploitative transaction after it has occurred.
* An elder who is "slipping." These cases involve elders who once may have been perfectly capable of handling their own financial affairs, but dementia or other ailments cause them to lose interest and ability in such matters. These elderly people typically turn to the exploiter, who again is someone they trust, to handle their financial affairs. Often the delegation of responsibility is not overt, but is simply assumed by the exploiter, with little or no understanding by the elder of what is occurring.
* The bereaved widow[er]. These cases typically involve persons who have had long marriages and whose spouses conducted the financial business of the family. The spouse dies, leaving the survivor to cope with the emotional devastation of being left alone, compounded with the anxiety and confusion of having to deal with financial matters in which he or she has little experience. For such people, dealing with banks, creditors, and professionals is a nightmare that only serves to remind them of how much they miss their spouses. The entrance of the exploiter is a welcome relief that opens the door to the blissful state of allowing someone else to handle the money.
Once the exploiter obtains access to the senior's financial assets, the actual methods of exploitation are likewise predictable. One of the most commonly used means of transferring property is the general, durable power of attorney. This instrument, which is typically quite useful in dealing with an incapacitated elderly person's affairs, is a powerful tool in the hands of an unscrupulous person. Such an instrument allows the appointed attorney-in-fact full legal authority to transfer an elder's property - including houses, stocks, bonds, and bank accounts.
Contact Steven Peck's Premier Legal toll free at 1-866-999-9085 to talk to an experienced elder abuse and neglect attorney.
