Kilgore & Kilgore has recently experienced a rise in elder financial abuse cases, which mirrors a national trend. According to the National Adult Protective Services Association (NAPSA), the number and complexity of reports involving financial abuse of older adults in the U.S. has spiked during the past decade. One in 20 older adults indicated some form of perceived financial mistreatment. Reports of financial abuse to NAPSA identified the perpetrators as relatives, trusted friends and strangers.

In Dallas County, there were just under 338,000 people age 60 years or older, according to the U.S. Census of 2012, of which just over 32,000 older adults were below the poverty line and just fewer than 132,000 were minorities. In our next blog post, we will discuss our advice for older adults who wish to avoid becoming susceptible to others hoping to take advantage of them. This starts with knowing their rights, which we will summarize next week. If you know an older adult, share this blog post with him or her. Do what you can to help neighbors, friends and relatives become aware.

Elderly Man Struggles to Maintain His Independence as His Abilities Decline

By way of example, consider the following scenarios. A 79- year-old man holds a substantial sum of money in trust, for the benefit of the children of his deceased son by his first marriage. There is no court supervision of the trust. He remarried but is now divorced and living alone. Since his remarriage, he has had very little contact the wife and children of his deceased son. He now suffers from the onset of dementia, and is hospitalized with what may be his final illness. He is very independent, refuses to recognize his diminishing condition, and often sends visiting relatives away from his hospital bed. He has placed the daughter of his second wife in charge of his affairs, under a power of attorney. Family members are respectful of his wishes, but are concerned about his ability to manage his affairs. In this case, it is not only the interest of the elderly person that needs protection. In what way can the children’s interest in the trust funds be protected?

Older Couple Becomes Isolated and Dependent on a Stranger

Another example involves an elderly couple lives together on a rural homestead. Neither has any children, and they have no close relatives. Over time, the husband’s health fails, and he becomes physically unable to manage the farm or their personal affairs. His wife has no business experience and is not capable of properly managing their affairs. A care giver is hired to manage the household, provide meals and otherwise look after the couple. However, over a period of time the caregiver gains their confidence, and ultimately takes control of all their affairs, including the expenditure of their funds. The caregiver gradually alienates this couple from long-term employees, friends, attorneys and advisors and discourages visitors. Slowly but surely the care giver isolates them completely. They become totally dependent on the caregiver, who ultimately acquires the entire estate. How can infirm elderly people be protected from undue influence by a caregiver in these kinds of circumstances?

Lonely Widower Gets Involved in Internet Relationship

Yet another example involves a retired, somewhat reclusive investor is left alone late in life following the death of his second wife. With no active social life and no children or close relatives, this gentleman becomes lonely and searches the internet for companionship. His inquiries are rewarded when he finds an attractive and sympathetic middle-aged woman, with similar interests and a pleasing personality. As they start seeing each other regularly, the woman shares the details of her personal life, her family background and her business interests. He, of course, reciprocates. Ultimately, they make plans to marry. He makes her a bridge loan so she can move her business closer to him. He explains to his in-laws that he probably won’t attend family functions, as in the past. It then turns out that the marriage has to be postponed due to severe medical problems the woman suddenly developed. The gentleman was more than willing to help out with additional loans to meet these unexpected medical expenses. It was not until most of his savings was depleted that this gentleman is informed by an assistant District Attorney that his companion is under investigation for criminal fraud. Eventually, it is revealed that the companion is already married and believed to be a member of a criminal group suspected of various scams to defraud people. Although the companion was indicted for fraudulently obtaining money under false pretenses, none of this gentleman’s money was recovered. In this case, the elderly man was not infirm or mentally impaired, only emotionally vulnerable. What could have been done to protect his interests?

Awareness, Knowledge and Planning – Best Strategies for Prevention

This small sampling of legal problems that can occur as a result of the aging process is presented in the hope it becomes apparent that older adults are vulnerable emotionally and financially. Attempts to deal with problems of this nature after they occur are difficult and generally unsatisfactory. The keys to prevention are awareness, knowledge and planning so as to avoid the kinds of circumstances where elder financial abuse may occur.

Get Legal Details in Order Before Need Arises

No matter how self-sufficient an older adult feels, the natural loss of energy, declining health, debilitating illness, injury, or dementia can put anyone in a vulnerable position, regardless of financial condition. The best protection is through staying connected to family members, friends and neighbors. Wills, powers of attorney and advanced directives should be put in place before the need arises. Family members, counselors and legal advisors should be made aware of the elder person’s wishes concerning care, treatment and disposition of personal assets before there is reason to question judgment or competence.

Consult a Kilgore & Kilgore Attorney

Many of these unfortunate situations can be resolved through the efforts of an attorney. Kilgore & Kilgore attorneys are experienced, compassionate and skilled at these types of matters. Stay tuned to next week’s blog post. We will briefly discuss our advice for older adults who wish to avoid becoming susceptible to others hoping to take advantage of them. This starts with knowing their rights, which we will summarize next week.