Financial Elder Abuse

Financial elder abuse is a growing problem in our society, affecting vulnerable older adults who are often targeted by scammers and unscrupulous individuals. In many cases, this abuse occurs within the context of Trust litigation, where family members or other beneficiaries may dispute the management or distribution of assets held in trust. Understanding the dynamics of financial elder abuse and Trust litigation is critical for protecting the rights of older adults and ensuring that their assets are managed properly.

What is financial elder abuse?

Financial elder abuse refers to any situation where an older adult is taken advantage of financially, often through deception, manipulation, or coercion. This can include everything from identity theft and credit card fraud to more complex scams and schemes designed to drain an older person’s bank account or assets. In some cases, financial elder abuse occurs within the context of family relationships, where a trusted family member may take advantage of an older relative’s trust or financial resources, typically by undue influence.

Trust litigation deals with the aftermath of such circumstances, with financial elder abuse typically being at the heart of these disputes. Trust litigation can only ensue once the Trust becomes irrevocable, therefore, if an elderly loved one is being financially manipulated prior to that, legal recourse, like challenging a Trust, would not be available.

What are the legal options for addressing financial elder abuse?

To bring a cogent claim of financial elder abuse while the victim is living, it must meet the following elements. First, there needs to be an ascertainable bad actor, someone who you can identify and have reasonable reasons to suspect is financially harming your elderly loved one. Second, the elder needs to be at least 65 years of age for it to be considered elder abuse. Third, the elderly person must have experienced significant financial harm, and the bad actor’s conduct must be a substantial reason for the harm.

In financial elder abuse claims, the elder’s cognizance and mental capacity is a determining factor. If the elder is mentally cognizant and capable of understanding the nature of their finances, only they will have the authority and legal standing to pursue legal recourse. In these circumstances, the elderly person can either consult an estate planning attorney to revise their Trust or file a lawsuit against the bad actor to recover their own assets. Although the concerned parties may be beneficiaries of the Trust, while the elderly loved one is living, they are the rightful owner of their assets.

If the elderly person is cognitively impaired and cannot make decisions about their finances, the person seeking recourse must review the estate document in question. It is important to consult with an estate planner to see what protocol is recorded within the document. If the current appointed Trustee or Executor is the one jeopardizing the assets, appointing a new Trustee or Executor will need to comply with the directive of the estate document. Additionally, if there are any recorded plans in place in circumstances of mental incapacitation, those must also be complied with. Furthermore, the concerned party can pursue a conservatorship as a form of legal recourse. Without a conservatorship, the concerned parties have no legal standing to control or intervene in any of the elderly person’s financial affairs. To pursue a conservatorship, a petition for conservatorship will need to be filed with the courts, and evidence proving mental incapacitation will need to be gathered for the hearing.

Ultimately, an elderly person facing financial abuse must take their own legal initiative except in cases of mental impairment. Concerned parties in these circumstances may express their worries, but it is imperative not to influence or coerce a mentally sound elderly loved one into a decision about the control of their assets. This can be perceived as undue influence. While an elderly loved one is present and mentally sound, they make the final call regarding their assets.

If you are in a similar circumstance and are undergoing an inheritance dispute, please contact The Inheritance Recovery Attorneys. Our firm offers free consultations and specializes in trust and will litigation. We are here to help you protect your inheritance and ensure your loved one’s wishes are fulfilled honestly.