Elder financial abuse is a distressing reality that can happen to anyone, at any time, and often involves those who are closest to us. It’s crucial to recognize the signs and understand how to safeguard your finances and assets against exploitation. Here’s a breakdown of what elder financial abuse is, who might commit it, the warning signs to watch for, and the steps you can take to protect yourself.
What Is Elder Financial Abuse?
Elder financial abuse occurs when someone uses your money or assets without your permission or for their own benefit. This can take many forms, such as:
- Stealing, borrowing, or taking money without your knowledge or consent, with no intention of repaying it.
- Forging your signature or impersonating you.
- Pressuring or misleading you into signing documents.
- Restricting your access to your own funds.
- Using your money for purposes other than your intentions.
- Coercing you to change legal documents such as a Will, Power of Attorney, or Deed.
Who Commits Elder Financial Abuse?
The sad truth is that those who perpetrate elder financial abuse may be people you trust, including family members, friends, or even acquaintances. Often, the abuse arises out of informal family arrangements that may unintentionally open the door for exploitation.
Family members might pressure you for money, believing they are entitled to it due to a perceived future inheritance. In some cases, they may also act out of a desire to protect their inheritance from being spent on your care needs.
Abusers may start with good intentions, but financial stress, addiction problems, or family conflicts can push them into harmful behavior. Regardless of the motives, elder financial abuse is unacceptable and should not be tolerated.
Warning Signs of Elder Financial Abuse
Recognizing elder financial abuse can be tricky, as it often starts gradually or under the guise of “help.” Here are some key signs that you might be experiencing financial exploitation:
- Missing mail, such as bank statements or bills.
- Unexplained withdrawals or transactions from your bank accounts.
- Feeling pressured to make financial decisions that aren’t in your best interest, such as cashing in a policy prematurely.
- Coercion to alter your Will, Power of Attorney, or give someone access to your accounts.
- A sense of isolation or encountering threatening behavior from those close to you.
How to Protect Yourself
To safeguard your financial well-being, it’s essential to build a support network of trustworthy people who can help manage your affairs if necessary. These might include:
- Family members and friends
- Legal advisors
- Financial planners
- Accountants
Here are some practical steps you can take to reduce the risk of financial abuse:
- Keep in touch with trusted individuals and feel comfortable sharing your concerns.
- Learn how to spot scams and avoid falling victim to them.
- Regularly monitor your bank and credit card statements for any unfamiliar transactions.
- If you lend money, make sure to have a written agreement outlining repayment terms.
- Never sign any documents you don’t fully understand.
- Seek independent, confidential legal or financial advice when making important decisions.
- Have someone you trust verify that your financial affairs are being managed in your best interests.
Why It Matters to Us
At Challenger, we understand the financial security of our customers is of utmost importance, especially in retirement. Elder financial abuse can have devastating consequences on our customers’ financial futures, and we are committed to supporting those who might be affected. If you feel that you or someone you know is experiencing financial abuse, it’s important to seek help. We promise to handle any information you share with us with the utmost confidentiality and respect.
By staying vigilant and taking steps to protect yourself, you can reduce the risk of elder financial abuse and ensure your finances are managed according to your wishes. Don’t hesitate to reach out to trusted professionals if you need assistance in securing your future.
