Elder financial abuse is an unfortunate reality estate planning law firms occasionally come across and must be equipped to handle. But for families in the midst of managing their estate, it can be hard to recognize the signs of elder financial abuse. Even more so, many families aren’t given the tools to navigate this sensitive situation. While elder financial abuse is a complex issue, there are ways to recognize and manage it if it occurs.
Working with a trusted attorney can help you through this difficult time. This article examines the key areas top estate planning attorneys at Stone Arch Law Office in Minneapolis and Woodbury, Minnesota want families to know to protect themselves.
Recent Trends in Elder Financial Abuse in the U.S.
- Financial abuse amongst elders is one of the most common, yet under-reported, crimes in the U.S.
- In 2023, there were over 100,000 victims of elder financial abuse who each lost an average of $34,000. The total amount for that year was $3.4 billion, up 11% from 2022; however, the actual losses are likely higher due to incidents that went unnoticed or unreported.
- Elder financial abuse comes in many different forms, but all have the end goal of exploiting the elderly to collect personal and financial information to perpetrate fraud. The fraudsters could be strangers, friends or even family members.
What is Elder Financial Abuse?
Defined as the illegal, unauthorized, or improper use of an older person’s funds, property, or assets, elder financial abuse is the fastest growing form of elder abuse.
Elder financial abuse comes in a variety of shapes and sizes, but the common denominator is the end goal of collecting personal and financial information to perpetrate fraud. This could be stealing money and valuables, forging signatures, misusing power of attorney, coercion to transfer money, unexplained transfers of funds and others.
Why Minnesotas Should Be Watchful for Financial Scams and Abuse
Sadly, financial crimes against the elderly are increasing. In 2023, there were over 100,000 victims of elder financial abuse who each lost an average of $34,000. The total amount for that year was $3.4 billion, up 11% from 2022, though true losses are probably more due to incidents going unnoticed or unreported. In fact, this kind of elder abuse is one of the most common yet under-reported crimes in the U.S.
Unfortunately, these crimes are not going away and will continue to befall onto unknowing and unsuspecting seniors.
Trusted family members are the first line of defense against elder financial abuse. However, they may also be the perpetrators. It is important to know the signs to prevent anyone from taking advantage of you and your loved ones.
Protect Your Loved Ones from Financial Elder Abuse
Some of the most common warning signs of elder financial abuse include:
- Unexpected financial hardship, like difficulty paying bills
- Suspicious bank transactions
- Changes to wills, powers of attorney and other financial documents
- Intense new relationships
- Missing valuables
Working directly with a financial planner or estate planning law firm to help be a mediator or even provide a trusted adult with legal authority to review an elder’s financial records can provide the additional support needed to prevent abuse or identify it more quickly.
How Estate Planning Strategies Protect Your Finances and Legacy
When the time comes to protect your legacy in Minneapolis and Woodbury, there are a few questions for you to keep in mind:
- Do you have older parents who could fall prey to financial elder abuse?
- Are you concerned about being a victim of a financial crime?
- Do you have an estate plan?
- When was the last time you updated your estate plan?
Even if you or your aging loved ones do not have an estate plan, there are strategies you can use to protect your finances including updating:
- Pay-on-death beneficiaries
- Joint ownership with right of survivorship
- Lifetime giving to family members or charities
Meet with an Experienced Estate Planning Attorney to Prevent Elder Financial Abuse
Elder financial abuse is a serious but preventable issue that concerns families across Minnesota. When you’re ready to start the conversation on legacy protection, an estate planning attorney at Stone Arch Law Office will help you create a will or trust that works best for your family. Book a call with our estate planning law firm in Minneapolis today to start the process and ensure that you and your legacy are protected.
References: National Institute on Aging (Oct. 23, 2023) “Managing Money Problems for People with Dementia” and Marketplace.org (Nov. 16, 2012) “One woman’s story of elder financial abuse”
