Elder abuse isn’t always physical—it often happens financially. Scammers, dishonest caregivers, and even family members can take advantage of older adults, draining their savings or coercing them into bad financial decisions. Taking proactive steps can help protect older adults. Here’s how.
1. Establish Durable Powers of Attorney
One of the most effective ways to protect a senior’s finances is to establish a durable power of attorney (POA). This legal document allows a trusted individual—often a family member or close friend—to manage finances if the senior becomes unable to do so.
A well-drafted POA can:
- Give an agent authority over banking, investments, and bill payments.
- Include safeguards, such as requiring two people to approve major financial decisions.
- Set clear limits to prevent misuse of funds.
Without a POA, a senior’s finances could fall into the hands of a court-appointed conservator—who may not be the person they would have chosen.
2. Set Up a Revocable Living Trust
A revocable living trust allows someone to maintain control over their assets while providing a structured way to manage finances. Unlike a will, a trust can help protect against financial abuse by ensuring assets are handled according to specific instructions.
Key benefits include:
- Naming a trustee to manage assets if the senior becomes incapacitated.
- Allowing co-trustees or successor trustees to step in if needed.
- Reducing the likelihood of financial exploitation by avoiding probate, which makes assets public.
A properly structured trust provides an added layer of protection, preventing unauthorized access to assets.
3. Monitor Financial Accounts Regularly
Regular oversight is one of the simplest ways to prevent financial abuse. Seniors—or their trusted advisors—should monitor bank and investment accounts for unusual activity, such as:
- Large or unexplained withdrawals.
- New accounts or loans in the senior’s name.
- Payments to unfamiliar individuals or businesses.
Setting up automatic alerts with banks and credit card companies can help detect suspicious transactions early. Involving a trusted family member or financial professional can provide additional oversight.
4. Beware of Scams Targeting Older Adults
Financial predators often target older adults with convincing scams. Some of the most common include:
- IRS or government imposter scams – Calls claiming unpaid taxes or threats of arrest.
- Grandparent scams – A fraudster pretends to be a grandchild in distress, asking for money.
- Fake lottery or sweepstakes scams – A senior is told they’ve won a prize but must pay fees upfront.
Education is key. Seniors should be encouraged to never give personal or financial information over the phone and to verify any requests for money with a trusted family member.
5. Keep Estate Planning Documents Updated
Outdated estate planning documents can create opportunities for financial abuse. Regular reviews ensure that:
- Wills and trusts reflect the senior’s current wishes.
- Beneficiary designations on accounts and insurance policies are up to date.
- Powers of attorney and trustees remain appropriate and trustworthy.
At least every few years, a periodic review helps prevent manipulation or unauthorized changes.
6. Work with an Estate Planning Attorney
Having a knowledgeable attorney involved provides critical oversight. An attorney can:
- Draft legally sound documents that protect against undue influence.
- Help establish safeguards, such as requiring multiple signers for significant financial decisions.
- Provide ongoing guidance on how to protect assets.
An estate planning attorney is an impartial advocate who ensures a senior’s wishes are honored, and their finances remain secure. If you or a loved one need help creating a secure financial plan, Loew Law Group can help.
Our firm works with families throughout San Mateo to implement protective measures. Contact us today to safeguard your assets against elder abuse.