The elderly can be vulnerable to various forms of elder abuse, one of which is financial exploitation. Financial exploitation involves unauthorized use of an elderly person’s finances or property, either by a family member, caregiver or an unknown scammer.
The media recently reported the case of an elderly California couple who faced eviction from their home of 56 years after falling victim to a scam devised by their grandson. Chad Moore defrauded his grandparents Hank and Helen Kawecki out of their deed, defaulted on nearly $500,000 in loans and lost their Thousand Oaks house to foreclosure.
Moore convinced the couple he would provide them with lifelong financial support if they transferred the house over to him. After taking out a loan, he initially kept his promise to give his grandparents monthly payments. However, he stopped the payments after a few months and allegedly spent all the money in Las Vegas.
Instead, Moore put the house up for sale. He also lured his grandparents out of their home while realtors hosted open house events for potential clients. The couple filed a lawsuit against Moore with their neighbor’s help. Police are investigating the case.
The National Committee for the Prevention of Elder Abuse has identified a number of behaviors commonly associated with financial fraud. These include: taking money or property, forging the elderly person’s signature, and failing to follow through on promises for lifelong care in exchange for money or property. An older person may also be coerced or deceived into signing a will, power of attorney or deed.
Creating an estate plan can help protect the elderly from financial exploitation. A living trust, Durable Power of Attorney and Advance Directive are all excellent safeguards. Each document names a trusted individual who can manage assets and health care according to specified wishes in the event of incapacity.