Can You Sue for Elder Financial Abuse?

Many older people are vulnerable to various forms of abuse. This includes financial abuse, such as theft or embezzlement, targeting an older person’s money or property. In the most serious cases, elder financial abuse can take away a person’s entire life savings and deprive them of the ability to support themselves.

Elder exploitation can involve family members and caregivers as perpetrators. For legal advice about protecting vulnerable adults, talk to an experienced elder law attorney.

Elder Financial Abuse Cases

According to the National Council on Aging (NCOA), approximately one in 10 seniors aged 60 or older experiences some form of elder abuse.

“I’ve seen a lot,” says Ingrid M. Evans, an elder law attorney in San Francisco. “What I see the most is caregiver fraud — caregivers who get intertwined in the lives of an elder, gain power of attorney, then get in their wills, their homes, their trusts. I also see quite a bit of insurance fraud — agents selling bad products to seniors that lock up their money. And I also, unfortunately, see a lot of extended family issues, too, where a mistress comes in and has everything passed on to her instead of the original heirs.”

Anne Marie Murphy, a trial attorney focusing on elder abuse matters at Cotchett, Pitre & McCarthy in California, notes that a hallmark of these cases is the elderly victim having a diminished capacity — be it dementia or Alzheimer’s.

Physical abuse typically takes place in a nursing home setting or in long-term care. However, financial abuse “can run the gamut of every type of financial scam or scheme you could imagine.”

Family Members Often Report Elder Abuse

Often, the first contact Murphy will get regarding an elder abuse claim will be from a child worried about a parent. “I’d want to find out if that parent is willing and able to speak to me at some point,” she says. “We want to be taking the case that’s going to benefit the elder, as opposed to one part of feuding siblings.”

A common occurrence Murphy sees is the ‘broken-wing syndrome’ — wherein an adult child continues to live with an elderly parent, leading the other siblings to believe they may be taking advantage of them. The ideal situation is when everyone is united, and the abuse originates from outside the nuclear family.

Recognizing the Signs of Potential Elder Financial Abuse

Unlike physical abuse, elder financial abuse is not always easy to detect. But there are some common warning signs in a financial situation that should raise concerns:

• The elderly person has become dependent on a single caregiver who restricts the person’s access to the outside world.
• A pattern of unusual or unexplained activity on the elderly person’s bank accounts, such as sudden, large withdrawals.
• Evidence of forgery on the elderly person’s checkbooks, estate planning documents, or other important papers.
• The elderly person has unpaid bills even though someone holds a power of attorney to make such payments on their behalf.
• A new individual suddenly appears and starts managing their financial decisions.
• Changes to the estate plan documents at a time when the older person had questionable capacity or after a diagnosis of Alzheimer’s or dementia.

Steps Lawyers Take After Reported Elder Abuse

“You’re always going to see surprises in these types of cases, but you want to limit the number of surprises,” she says. “We’re trying to support what is best for the senior and what they wanted when they had capacity.”

She’ll then look to speak with the elder. If they can’t speak for themselves, Murphy will check their estate plan to see if they have a power of attorney in place. If the senior dies, she will speak to the senior’s estate planning attorney about their interactions.

Of course, there may be ethical issues that arise when you’re representing a senior with capacity issues. “We make a decision right from the beginning whether somebody needs to stand in the senior’s shoes and act as a guardian ad litem,” Murphy says. “When you file your complaint, you appoint a guardian ad litem when you know that the senior cannot handle the stress of being the main litigant.”

How To Prevent Elder Financial Abuse

There is one simple way to protect your family members from financial abuse and scammers: “Stay involved in their lives,” Evans says.

“Don’t let a caregiver have unfettered access to a senior and let them become their sole confidant. Help them with their finances. Hire a licensed and bonded person in that area who isn’t going to abuse them financially,” she adds.

“Ask if they have an estate plan and, if they do, ask for a copy of it. Ask if they’ve changed it or if anyone has pressured them to change it. People don’t like to talk about these things, but it’s really important to do so — no matter what your age.”

Making an estate plan allows you to name people whom you trust to make financial and legal decisions on your behalf if you become incapacitated. You should never sign any estate planning documents — such as a will, trust, or power of attorney — without consulting an attorney first.

One of the most blatant forms of elder financial abuse involves someone giving an older adult “papers to sign” without explaining them. This is a trick often used to obtain a power of attorney, which can grant the agent named complete control of the older adult’s finances. Never sign any paperwork without reviewing it yourself. If you don’t understand legal documents, speak to an independent estate planning attorney who has a fiduciary duty.

Gathering Evidence in Elder Abuse Cases

Often, elder abuse happens behind closed doors. The case relies on circumstantial evidence, including testimony and depositions from family members, bankers, estate planning attorneys, and medical personnel.

In the mid-2010s, Murphy’s law firm took on the case of elder abuse by a person in a position of trust. They had realized that Cook’s neighbor, an out-of-work prison nurse, had convinced Cook to change his long-held estate plan. At one point in the case, Murphy realized that the attorney who amended the estate plan may not have even spoken to Cook.

“Mr. Cook had a voice box that was extremely distinct; it sounded like an old-fashioned computer talking to you,” she says. “And the estate planning attorney actually did not remember ever having a conversation with Mr. Cook wherein he thought his voice was unusual.”

The team also recreated the final days of Cook’s life by getting testimony from neighbors, as well as health care and hospice workers. In turn, the jury found that there was financial elder abuse that led to a change in the estate plan.

Find an Attorney Experienced in Elder Abuse Cases

“I am very blunt with people,” she adds. “As long as an elder is alive, nobody has a legal right to their estate. And, as long as an elder has capacity, they can do absolutely anything they choose with their money.”

Use the Super Lawyers directory to find an experienced attorney in your area for legal advice about reporting suspected abuse of an older adult.