As your loved ones age, you might notice the physical, mental and emotional changes that they go through.
Perhaps their senses are duller, making it difficult to read fine print or understand conversations. Or maybe they are having more difficulties with memory, decision-making or processing complex information.
While these changes are natural parts of aging, they can also make your loved one more susceptible to many types of abuse, including financial exploitation.
To protect your loved ones from financial abuse, it’s crucial to understand the warning signs. Here are a few examples.
Unusual financial activity
Unusual financial activity or behavior is often the first sign of elder financial exploitation. This can include:
- Sudden changes in banking habits
- Unexplained withdrawals or transfers
- New names appearing on accounts or credit cards
Such activities may indicate that someone is taking advantage of your loved one, be it through coercion or manipulation.
Changes in financial documents
Alterations to financial documents are another common red flag. Be on the lookout for abrupt changes to wills, trusts or power of attorney documents, especially if they benefit unfamiliar individuals.
The unexplained disappearance of financial documents, such as bank statements or tax returns, could suggest someone is trying to hide fraudulent activity.
Additionally, watch out for suspicious signatures on checks or legal papers. These may indicate forgery.
Lifestyle and behavior changes
Changes in your loved one’s lifestyle or behavior can signal financial exploitation, but it may be hard to tell at first. Here are some red flags to be wary of:
- A sudden decline in their quality of life
- Unexplained anxiety about personal finances
- Reluctancy to discuss financial matters
These warning signs are especially troubling if your loved one has never worried about money before.
Keep in mind that some elders can be embarrassed about being victims of exploitation. So, if you want to broach the subject, it is best to create a safe and nonjudgmental environment first.
Unusual purchases or services
Watch out for unexpected or out-of-character purchases, especially if they are expensive or provided by unfamiliar companies. Large purchases that seem uncharacteristic for your loved one, such as a new car when they no longer drive, should raise questions.
An estate plan can help protect your loved one
An estate plan can be a powerful tool in protecting elderly individuals from financial abuse. By creating a comprehensive estate plan, seniors can designate trusted individuals to manage finances and make decisions when they become incapacitated.
An estate planning attorney can help put up safeguards for your loved one and their wealth. If a family member is starting to show signs of physical and mental decline, consider suggesting an estate plan sooner rather than later.