More HH Legal Updates

The Growing Risk of Financial Exploitation
As people age, they may experience a decline in health or cognitive function and become increasingly reliant on others for care and assistance. These factors can make them especially vulnerable to financial exploitation. Alarmingly, financial abuse of older adults is widespread. AARP estimates that Americans over the age of 60 lose more than $28 billion each year to such exploitation. At Houston Harbaugh, we recognize the importance of safeguarding older adults and offer strategic legal tools to help prevent abuse before it occurs and respond effectively if it does.

Recognizing Common Forms of Elder Financial Abuse
Financial abuse can take many forms, and it is not always easy to detect. Common examples include coercing or deceiving an older adult into signing documents such as wills, powers of attorney, or financial agreements; unauthorized use or outright theft of an elder’s money or property; denying an older adult access to their own financial information; and billing for unnecessary or inflated caregiving services. Abuse often comes from someone the elder knows or trusts, which makes it even more difficult to recognize or report. Being alert to these patterns is a critical first step in prevention.

Preventative Planning with Legal Protections
The most effective way to prevent financial abuse is through advance planning. A well-crafted estate plan, prepared with the help of an elder law attorney, can include tools such as trusts, durable powers of attorney, and advance healthcare directives. These documents help ensure that financial decisions are made in accordance with the older adult’s wishes while establishing checks and balances to reduce the risk of abuse. It is important that seniors meet privately with their attorney to discuss these matters, so their intentions can be clearly communicated without outside pressure.

Equally important is the selection of trustworthy individuals to act on the older person’s behalf. While it may seem natural to appoint a family member as a fiduciary, this is not always the best option. Personal financial issues, family tensions, or lack of experience can make some individuals ill-suited for the role. An elder law attorney can help evaluate each candidate and may recommend additional protections such as appointing an independent fiduciary, requiring regular financial reporting, or naming a trust protector with the power to oversee or replace a trustee if necessary.

Responding to Suspected Financial Abuse
If financial abuse is suspected or has already occurred, swift action is essential. The first step is to report the situation to Adult Protective Services or local law enforcement. These agencies can begin investigating and may initiate protective interventions. Working in coordination with authorities, an elder law attorney can assess the situation, identify affected assets, and develop a strategy to stop the abuse and mitigate further loss.

Legal action may involve removing the abuser from any fiduciary role, petitioning the court for guardianship or conservatorship, or pursuing civil claims to recover stolen assets. In some cases, protective orders or court injunctions can be used to prevent the abuser from accessing the victim or their finances. Attorneys may also work with financial institutions to freeze accounts and secure misappropriated funds. Depending on the circumstances, dispute resolution methods such as mediation or settlement negotiations may offer an efficient path toward recovery, especially when family members are involved.

Building a Support Network for Recovery
Addressing financial exploitation requires more than legal remedies. Recovery can be emotionally challenging for the older adult, especially if the abuse was carried out by a loved one. Creating a supportive network that includes family, trusted friends, financial advisors, therapists, and social workers can help the individual regain stability and rebuild trust. An elder law attorney can play a key role in coordinating this network, ensuring the right protections are in place, and offering ongoing legal guidance as needed.

How Houston Harbaugh Can Help
At Houston Harbaugh, we can provide both preventative planning and responsive legal advocacy if an older adult has suffered financial exploitation. Whether you are looking to put safeguards in place or respond to a situation that has already arisen, we can help guide you through your options and take meaningful legal steps to protect yourself or your loved one. Contact Heidi Rai Stewart at hstewart@hh-law.com or 412.288.1846 to learn how Houston Harbaugh can assist you in creating a safer, more secure future.