Financial exploitation of the elderly can take place in nursing homes.
Nursing homes can be an excellent support for aging individuals and their families.
They can provide specialized care in an environment with some social programming.
Although nursing homes have many benefits, they are not immune from corruption or those targeting the vulnerable.
According to Nursing Homes Abuse, about one in six residents of nursing homes were victims of some form of abuse in 2022.
Financial exploitation is one commonly found in poorly managed nursing homes.
It can include hidden charges, unauthorized withdrawals, manipulation by caregivers, and overbearing financial control.
The elderly are common targets for financial exploitation.
Financial abuse can be challenging to spot if you do not have access to bank accounts or other assets.
If you have access to these, keep looking for red flags.
Your elderly loved ones may be victims of financial abuse if there are sudden changes to estate planning documents, names added to financial documents, unexplained withdrawals from bank accounts, missing valuable possessions, substandard care despite adequate funding, signs of anxiety or fear when discussing money, or reports of financial abuse from your elderly loved one.
Perpetrators of financial abuse depend on people overlooking their actions.
Reviewing and monitoring financial documents such as credit card bills and bank statements is the best way to spot financial exploitation quickly.
Doing so enables you to notice changes in financial habits.
To help monitor for fraud, many banks allow you to set up alerts for large transfers or withdrawals.
Another way to discourage criminals from targeting your loved one is to make frequent visits to your loved one in the nursing home.
This allows you to be constantly aware of their living conditions and caregiver relationships.
Estate planning, through the creation of a general durable power of attorney and other related documents, can help give greater authority to a trusted family member or attorney to help seniors manage their finances.
Your elderly loved one must be the one to "pull the trigger" when setting up a general durable power of attorney and other related documents.
They should select someone they trust to serve as the fiduciary.
This can be a lot of work, as it sets up the selected fiduciary (especially if a family member or friend) to be the target of suspicion and distrust by other family members who were not selected.
Yikes!
But what if your elderly loved one does not want to entangle you or any other family members as a fiduciary?
If you are in the Kansas City metro area, I can personally and professionally recommend Advocates for Seniors, a firm of paralegals who serve as agents, executors, and trustees in such circumstances.
In addition, they are licensed social workers who provide in-hospital and outpatient patient advocacy and case management.
What about finances?
Not a problem.
Advocates for Seniors prepare taxes, including Forms 1040, 1041, 706, and 709, provide checkbook management and bill paying, and financial advisor oversight.
Can you tell I am a fan of Advocates for Seniors?
Another preventative action is to educate and remind your parents of common tactics and scams financial abusers use.
Encourage caution when sharing financial information and remind them to report suspicions immediately.
You should start documenting any evidence you find if you suspect financial exploitation.
Record changes in financial documents, suspicious transactions, and unusual behaviors from caregivers or your elderly loved one.
You can contact your local long-term care ombudsman or Adult Protective Services (APS) to make a report.
Seeking the advice and support of an elder law attorney can help you spot evidence and find solutions.
Estate planning provides additional protections for assets and loved ones.
A comprehensive estate plan includes safeguards against financial exploitation.
An experienced estate planning attorney can use trusts, wills, and powers of attorney to help you support the safety of your loved ones.
It is harder to reverse the damage of financial exploitation than it is to prevent the actions.
While estate planning involves upfront costs, it can save you and your loved ones from becoming easy targets.
Early recognition and detection of elder abuse through regularly checking financial documents and statements can stop exploitation early.
In addition to early detection, you can set up safeguards with comprehensive estate planning.
Staying involved and connected with your loved ones lets you quickly report suspicious behaviors to nursing home administration, ombudsman programs, and law enforcement when you suspect elder abuse.
This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
Reference: Nursing Homes Abuse (Sep. 13, 2023) "Financial Abuse in Nursing Homes: Warning Signs & What to Do"
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