Financial Elder Abuse: What is It and What to Look For

Financial Elder Abuse: What is It and What to Look For

By Melinda Gustafson Gervasi

March 14, 2025

Waiting for the A line on the BRT

Once a month I bus to downtown Madison, WI for a Legal Association for Women luncheon.  Over a lovely meal at Copper’s Tavern the group listens to a guest speaker, fulfilling our requirement to complete 30 hours of continued legal education every two years.  I enjoy my Sweet Corn Salad with Chicken (yes, I get the same meal every month) while a speaker expands my knowledge on subjects outside my area of focus.  This past week the speaker was preaching to the choir; as an estate planning and probate attorney I have a front row seat to the growing concerns related to elder financial abuse.  

What is elder financial abuse? It involves the illegal or improper use of an older adult's funds, property, or assets. It can range from simple theft to complex schemes involving power of attorney. A power of attorney is a legal document that gives authority to someone you appoint to make financial decisions for you.  Sometimes this power is only “triggered” if you are incapacitated and unable to act.  Other times it takes effect immediately.  It is up to you to decide under what conditions you want another person making your financial decisions.  Note, at death the authority to act for you ends.  

Concerned about an older loved one that might be subject to financial abuse?  Keep the following in mind:

1. Sudden Changes in Financial Habits:

• Are there unusual transactions in your loved one's bank statements? 
• Look for large or frequent withdrawals that don't match their typical spending patterns.  
• Are there new "friends" or caregivers exerting influence. 
• Be wary of individuals who suddenly become overly involved in your loved one's finances. 
• If your loved one suddenly alters their will or trusts, especially under pressure, it could be a red flag to abuse. 
• If your loved one is struggling to pay bills despite having adequate income, it could indicate financial exploitation. 
• Are valuable items like jewelry, electronics, or artwork disappearing?

2. Behavioral Changes in the Elder:

• Does your loved one seem afraid or uncomfortable around a particular family member, caregiver, or friend? 
• Are they withdrawing from social activities or becoming isolated from friends and family? This could be a sign that someone is controlling their access to others. 
• While cognitive decline can be a natural part of aging, sudden changes in mental clarity can also be a sign of manipulation or abuse.
• If your loved one becomes secretive or defensive when asked about their finances, it's a cause for concern.
• Are there signs they are not receiving adequate care, even though they have the money to pay for it?

3. Actions of the Potential Abuser:

• Does someone consistently interrupt or monitor your conversations with your loved one? 
• Are they constantly asking for loans or gifts? 
• Do they have access to bank accounts, credit cards, or online banking without a clear explanation? 
• Are they pressuring your loved one to sign documents without allowing them to consult with an independent attorney?
• Do they control the elder's access to mail, phone, or transportation?

Prevention may be key to keeping our seniors safe.  When possible, stay in close contact with your elderly loved ones and encourage them to discuss their finances with you. Help them understand their financial options and how to protect themselves from scams. Periodically review bank statements, credit card bills, and other financial documents for any irregularities.  For those in Wisconsin, there is an Elder Abuse Hotline to call to leave an anonymous report.  You can call 1-800-586-0107 or visit www.gwaar.org. 

Thank you for reading.  As a reminder, a blog is not legal advice.  It is meant to spark thought and reflection.  Please consult an attorney licensed in your state of residence for advice specific to your situation.  Again, thank you for reading.  Be well!

And The Academy Award Goes To…..Estate Planning Nightmares

And The Academy Award Goes To…..Estate Planning Nightmares

By Melinda Gustafson Gervasi

March 7, 2025

Sunday dinner was prepared far earlier than normal, a fact that did not slip passed my always hungry teenagers.  March 2nd marked the 97th annual Academy Awards, and even though I had not watched a single nominated film this year, I was determined to keep my tradition of watching the big show.  Dinner was ready early, and I settled into my favorite chair by 6pm to enjoy the glitz and glamour of Hollywood.  

Brush with a Start: Author (Melinda) with LeVar Burton
and her spouse, a huge Star Trek Fan 

Unlike prior years, the crop of films being recognized this year do not appear to delve into the nitty gritty complexity of family tensions in estate planning. However, several Oscar winning films of the recent past do just that – reflecting the real-life complexities of families and inheritances.  Family tensions, long-buried resentments, and unexpected inheritances can all collide, leading to dramatic and often heartbreaking consequences. Let's take a look at three films that illustrate this point:

1. The Descendants (2011)

This poignant film starring George Clooney delves into the complexities of family, grief, and land ownership in Hawaii.  The film highlights the importance of clear communication and planning, especially when dealing with significant assets like land. It shows how differing opinions and hidden family dynamics can surface when major decisions need to be made about an estate. The emotional weight of inheritance, and the responsibilities that come with it, are powerfully displayed.

2. Knives Out (2019)

This clever whodunit showcases a wealthy family riddled with secrets and greed, all vying for their patriarch's inheritance. "Knives Out" serves as a cautionary tale about the dangers of unclear or hastily changed wills. It underscores the importance of carefully considering all potential beneficiaries and the potential for family conflict when large sums of money are involved. The film brilliantly shows how hidden motivations can destroy family bonds.

3. Rain Man (1988)

This classic film explores the relationship between two estranged brothers, one of whom is autistic, and the inheritance left by their father. "Rain Man" highlights the importance of considering all family members when creating an estate plan, including those with special needs. It also raises questions about guardianship and the ethical considerations involved in managing someone else's assets. It shows that sometimes, inheritances can be a catalyst for family reconciliation, though it is often a very bumpy road.

Key Takeaways from these three films:

1. Communication is crucial: Open and honest conversations with family members about your estate plans can prevent misunderstandings and conflict. 
2. Clarity is essential: A well-drafted will or trust can ensure your wishes are carried out and minimize the potential for disputes. 
3. Seek professional guidance: Consulting with an estate planning attorney can help you navigate the complexities of inheritance and create a plan that protects your loved ones.

These films provide entertaining drama, they also offer valuable lessons about the importance of proactive and thoughtful estate planning. Don't let your family become the subject of a real-life estate planning nightmare.

As we move through 2025, I vow to return to my movie going ways -- hopefully I will see most, if not all, of the films nominate at the next awards ceremony.  Thank you for reading!   Remember, a blog is not legal advice.  Consult with an attorney, licensed in your home state, for advice specific to your situation.  Be well, and subscribe to my blog (enter your email in the upper right corner) so that you never miss new content.