If you have elderly parents or other loved ones, there are concrete steps you can take to make sure they stay financially safe. While we may think of a stranger as the “bad guy,” sadly, some caregivers (even relatives) exploit an older person’s health situation for their own benefit.
Be alert for possible signs of financial abuse
- Changing a will or power of attorney with no explanation. Usually, the change takes place quickly and is kept secret.
- Financial forgetfulness – either forgetting how to access online accounts, or forgetting to update a checkbook.
- Large sums of money suddenly disappear from your relative’s account for no apparent reason, or are given away as generous “gifts” or “loans” without any discussion.
- Inappropriate investment choices are made without discussion.
What you should do
Always be vigilant and watch out for the warning signs mentioned above. If you’re worried that loved ones may be the victim of financial abuse, by all means discuss your suspicions with them. Depending on the circumstances, you may need to report it to the police, even (especially!) if you think the perpetrator is one of your family members. The safety and wellbeing of your relative comes first. Don’t allow family politics to get in the way of doing your duty and reporting what is, after all, a crime.
Sometimes, the elderly victims of financial abuse may be aware of the fraud, but they won’t report it because they feel ashamed and embarrassed. Reassure your parents that it is not a personal reflection upon them and this crime must be reported.
For additional signs of possible financial elder abuse, and tips on preventing it, listen to my discussion on the topic with elder law attorneys Carolyn Rosenblatt and Mikol Davis here.
(The opinions expressed on The Goldstein on Gelt Show are those of the guest, and not necessarily my opinion or the opinion of Portfolio Resources Groups, Inc.)
Douglas Goldstein, CFP®, is the Director of Profile Investment Service, Ltd., which specializes in helping people who live in Israel with their US dollar assets and American investment and retirement accounts. He helps olim meet their financial goals through asset allocation, financial planning, and using money managers.
Published May 14, 2018.