Elder Exploitation Minimized with a Comprehensive Estate Plan

 Posted on December 24, 2024 in Estate Planning

Elder fraud occurs to an estimated one in 10 elderly Americans. Of all the reported global fraud, $777 billion is linked to elderly victims, in spite of the fact that elderly financial fraud is vastly underreported. Whether this underreporting is due to uncertainty regarding who to tell or the shame of being scammed, the problem is much bigger than the statistics show.

When you combine America’s aging population with the fact that fraud scams are getting more sophisticated, the end result is that the elderly are being scammed out of their precious financial resources. Every day, we hear of a new type of fraud, including government or law enforcement imposters, lottery scams, and tech and customer support scams.

Seniors can end up losing their retirement savings or investments while also dealing with lasting trauma and emotional damage. While strangers are often the perpetrators of elderly fraud, in some cases, the fraud is committed by family, friends, or neighbors of an elderly person. Elderly individuals who have a cognitive impairment, are isolated, or are in poor physical health are at a higher risk of financial abuse.

Because families typically live much further from one another than in the past, elderly people living alone may become targets of financial fraud and abuse. If you are worried that an elderly loved one might be scammed out of his or her financial resources, a comprehensive estate plan can minimize the risks. Speak to an experienced Cook County, IL estate planning attorney to determine what steps you can take to safeguard your loved one.

What Are Some Warning Signs of Financial Exploitation?

There are signs to watch for in an elderly loved one that may indicate financial exploitation. These may include:

• A sudden inability to pay basic expenses
• Isolation from family members and friends
• Unusual withdrawals from accounts
• Changes in spending habits
• Sudden, unexplained changes to wills, beneficiary designations, or adding a joint owner to an account

What Steps Can You Take Through an Estate Plan to Minimize the Risk of Financial Exploitation?

The following estate planning documents can help guard against financial fraud and exploitation for your loved one:

• A durable power of attorney and financial power of attorney allows a trusted agent to be chosen to make decisions regarding finances and can keep unauthorized people from misusing an elderly person’s financial resources.
• A revocable trust allows assets to be transferred into the control of a trustee, who has a fiduciary duty to properly manage those assets. Bank accounts, property, vehicles, investment accounts and high worth collectibles can all be placed in a revocable trust.
• If any unusual changes are made to the estate plan after it is complete, have the attorney’s office contact a trusted member of the family.  

What Else Can Be Done to Prevent Elder Financial Abuse?

A trusted person should be added to the elderly person’s bank accounts. Bank accounts and credit cards can be set up to send an alert text or email when more than a certain amount is taken out of the bank or charged to a credit card. Set these alerts to go to a trusted adult.

Set up direct deposit for Social Security so there are no paper checks in the mailbox.   Make sure all financial documents for the loved one are organized and that there are copies of any crucial documents, including the estate plan. Consider a credit freeze to prevent new credit cards from being opened by unauthorized persons.  

Contact a DuPage County, IL Estate Planning Lawyer

If you want to ensure your elderly loved one is not scammed out of his or her financial resources, an experienced Cook County, IL estate planning attorney from Whitacre & Stefanczuk LTD can help. Our legal practice is very intimate, and we aim to always communicate with our clients. We want our clients to feel comfortable, so we treat them like family. Call 773-622-6100 to schedule a free consultation. We speak fluent Polish.