Financial Abuse of an Elderly Person
Unfortunately, elderly people can be targets of financial abuse. People you trust may take advantage of powers you have given to them in estate planning devices. An example is in the area of the use of a power of attorney. While it is imperative that you choose someone you trust to make personal care decisions and manage financial affairs for you when you are unable to do so, elder abuse can take place if the Power of Attorney contains improper powers or powers you do not want the agent to have, such as the ability of the attorney in fact to make gifts to himself or the power to place you in a facility. You should be aware of circumstances that may lead to abuse.
Elderly persons are also more susceptible to undue influence for a variety of reasons. Undue influence exists when (1) there is confidential relationship between you and another person; (2) you suffer weakness of mind in relation to the influential person; and (3) the person gains unfair advantage over you. For example, a person who takes control over an elderly person by isolating him or her from other family and friends may be exerting undue influence in an effort to acquire the elderly person’s assets either before or after death.
The best remedy is to prevent the abuse by carefully choosing trustworthy people to act as agents, successor trustees, or conservators when preparing estate planning documents. However, if you believe that a person already designated is not acting in the your best interests, you can amend or revoke a power of attorney or revocable trust. You can demand an accounting. If there is evidence of mismanagement, the agent can be required to make restitution to you. You can also seek assistance from law enforcement or file a civil lawsuit against the person
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