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Money August 2013

Dollar Sense

Who Can Spot Elder Financial Abuse?

By Teresa Ambord

It could even be someone who has been a trusted adviser in the past, such as an accountant. Don’t assume “Mary would never do that to her mother.” Sometimes family members feel entitled to money they expect to inherit someday. Or they may have found themselves in financial difficulties and see Mom’s savings account as a way out.

 

It may or may not “take a village to raise a child,” but villagers can certainly be instrumental in noticing and halting some wrongs, like financial abuse of senior citizens. There will always be an unsavory element seeking to prey on the most vulnerable among us, like the frail elderly. The good news is, there are many people on the front lines who are in position to spot and report the abuse, including the elderly person’s own doctor and other medical professionals.

In a survey of 603 doctors and their nurses, about one in five say they often see evidence in their patients that financial abuse is occurring. Many seniors, they said, suffer from a condition known as mild cognitive impairment, and this makes them more susceptible to exploitation. This is why doctors and the nurses who work with them are on the lookout for warning signs. More than 90% of those surveyed agree they need -- and are prepared -- to report the abuse to the proper authorities. The survey was conducted by the Investor Protection Trust which seeks to educate medical professionals in spotting and reporting elder financial abuse

 

Who Else Can Spot Elder Abuse?

The people most likely to notice when something is amiss are those who deal frequently with the senior, directly and indirectly. Alert mail carriers have been known to be the heroes of the day. For example, after delivering mail to Mr. Jones for years, suddenly the mail stops coming, but Mr. Jones is still clearly at home. Pink shut-off notices on utility bills begin to arrive in the mail or the carrier sees them posted on Mr. Jones’ front door. Same with eviction notices. Or Mr. Jones mentions to the carrier he hasn’t gotten a bank statement in months. All of these could be danger signals. The mail carrier who notices a pattern may stop a bad situation by talking to his or her supervisor to find out if a problem exists.

Bank tellers may also be good front-line witnesses. A regular customer may suddenly appear jumpy or under duress, especially if accompanied by another person who seems pushy. A Social Security recipient with a solid financial record at the bank suddenly is overdrawn. Unusual withdrawals, or an increase in ATM activity, a negative balance, all of these are indicators a bank teller might notice and talk over with a supervisor.

In the same way, you yourself may notice an elderly neighbor whose behavior has suddenly and inexplicably changed. A simple conversation may clear up the mystery. Or it might raise more questions, making it necessary for you to call someone.

 

Who Might Be an Abuser?

It could be a spouse, another family member, a new “best friend,” a household employee, or a stranger. It could even be someone who has been a trusted adviser in the past, such as an accountant. Don’t assume “Mary would never do that to her mother.” Sometimes family members feel entitled to money they expect to inherit someday. Or they may have found themselves in financial difficulties and see Mom’s savings account as a way out.

Here is a list of some indicators of elder financial abuse, from preventelderabuse.org. Any one of these in itself may be meaningless. If you suspect abuse, look for a pattern or cluster of these indicators.

  • Bills that go unpaid and may result in eviction notices or discontinued utilities.
  • Unusual withdrawals from bank accounts, or transfers to other accounts which the elder cannot explain.
  • Bank statements and canceled checks stop coming to the elder’s house.
  • New “best friends,” especially if the new friend is pretty much unknown to anyone but the elder, or if the fit is odd, such as a young man suddenly befriending a much older woman.
  • Change in legal documents, or new documents, such as a power of attorney which the elder isn’t sure about.
  • Unusual signatures on checks or other documents.
  • Items missing.
  • A caregiver shows a lot of interest in the money dealings of the elder.
  • The elder (or caregiver) gives odd or implausible explanations for financial dealings.
  • There is an absence of documentation about financial dealings.
  • The elder can’t explain or is unaware of what financial arrangements have been made for him or her.

 

Caution

Exercise some caution here. I know a very kind woman who used to stop every evening as she walked her dog, to talk to an elderly neighbor. He was grumpy and unpleasant, but obviously lonely. They’d talk over the fence or sit on the porch and visit for 20 minutes or so. Mostly she’d listen to him rant, but if she missed a day, he seemed to feel the loss of contact deeply. Unfortunately, the man’s son grew suspicious of her motives and eventually he told her never to come back. Soon after the incident, the elderly gentleman was placed in a nursing home where he died.

The son was probably smart to be wary, but had he done a little checking, he would’ve learned there was no intent in the woman’s heart except to give an old man a few moments of company. Keep in mind, some people really are just plain nice.

If you do have reason to suspect elder financial abuse (or any kind of abuse) contact law enforcement, or the Adult Protective Services office in your area. Again, take cautious action, rather than jumping to conclusions.

 

Banks Can Be Friends and Lookouts Too

You should know, anybody can become a victim. For several years I was a phone friend of a man in his 90s who had lost his wife of 63 years. Max was a retired policeman, so although he had grown rusty, he was no dummy when it came to legal issues. He’d call every day and was generally cheerful. Then one day he called in a panic.

 

Teresa Ambord is a former accountant and Enrolled Agent with the IRS. Now she writes full time from her home, mostly for business, and about family when the inspiration strikes.

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