Posted on 08/30/2006 2:20:52 PM PDT by shrinkermd
Note to retirees: Beware the family.
Financial swindles are one of the fastest-growing forms of elder abuse. By some estimates, as many as five million senior citizens are victimized each year, says Sara Aravanis, director of the nonprofit National Center on Elder Abuse, which provides information to federal and state policy makers. Because of the problem's spread, "many states have laws authorizing financial institutions to report suspicions of elderly abuse," says Bruce Jay Baker, general counsel for the Illinois Bankers Association. Earlier this summer, the Securities and Exchange Commission hosted a Seniors Summit to highlight the issue, with SEC Chairman Christopher Cox noting that protecting seniors' pocketbooks "is one of the most important issues of our time."
Yet it's not dodgy financial experts or crooked caregivers who are the biggest threat. It's family. Children, siblings, grandchildren, nieces and nephews, and even spouses are the people most likely to rob the elderly, according to elder-law advocates and attorneys. The data that exist -- albeit in a spotty manner -- suggest that financial crimes rank as the third-most prevalent abuse of the elderly.
(Excerpt) Read more at online.wsj.com ...
I worked with someone who bragged about selling her grandparents' $550k home and pocketing the money.
Pathetic.
for many people, the proper strategy is to strip the parents of assets so they qualify for medicaid to pay for nursing/medical care, otherwise the govt. requires the elderly to spend all their assets first.
also, some people need to get under the 2 million inheritance tax cap which means over 2 mil and the feds take 50% the state and attorneys also get their cut.
And, as soon as society permits assisted suicide, or something similar - families will begin murdering their family members to get at their cash and be rid of the burden of caring for them.
This kind of behavior is so hard for me to believe people are capable of, even though I know it happens.
Through the years my dad was sick, after my mother's death, I spent most of my time and energy protecting him and his assets. Even after his death I was still in protective mode for months.
The people who do this stuff rationalize it by saying that Grandma's money is "their inheritance" or that they deserve it because they have done so much for Grandma. And it is a very, very common occurrence.
Hmmmm.......You think relatives stealing from the elderly is bad, you need to check out the California probate courts and the Attorneys that practice in them. Wholesale theft and abuse of the elderly. I know of a women with advanced Alzheimers that was put in a man's bed and he was allowed to have sex with her. The court doesn't want to hear about it despite an abundance of evidence and the San Diego prosecutor won't prosecute.
What did you do about it?
in the area of identity theft and elderly abuse, often proving there was victim can be difficult. often the victim, doesnt know exactly what they were doing, trusting the perpetrator. other times, the fraud is committed under duress and the victim may seem to be a willing partner while all along only cooperating out of fear.
i have seen these cases where a fraud investigator says something like "he {the victim} is on the videotape or we have {voice authorization}. proving elder abuse in financial matters can be really tough.
Which means that it would make sense for an only heir to take care of transferring assets before the parent's death, so that the probate process does not consume much of their inheritance
Already happening in Holland.
You know, they could get in huge trouble just for the tax avoidance.
Nope- won't work. You can't transfer assets prior to death. You have to take the case to the probate court and a conservatorship is created then the assets are placed in a trust. The problem is that the trust is in administered under the direct supervision of the Court. Once that happens the lawyers loot the estate. The LA Times did a big expose not long ago.
Yep, I can verify this. My x was told by the divorce judge that out of his pension he had to leave me $30.000.00. So when I turned in to my daughter, the Estate Person, she said: "I don't have to honor this, your divorced, should have stayed married to him, you would have gotten all, but now you get nothing."
I can sue the Estate....but how do you feel, a mother sueing her children????
The brother has passed away and the sister is still enjoying her ill gotten gains.
My brother and I were left with no inheritance thanks to these vultures.
Frankly, I don't care.
Note to retirees: Beware the family.
Financial swindles are one of the fastest-growing forms of elder abuse. By some estimates, as many as five million senior citizens are victimized each year, says Sara Aravanis, director of the nonprofit National Center on Elder Abuse, which provides information to federal and state policy makers. Because of the problem's spread, "many states have laws authorizing financial institutions to report suspicions of elderly abuse," says Bruce Jay Baker, general counsel for the Illinois Bankers Association. Earlier this summer, the Securities and Exchange Commission hosted a Seniors Summit to highlight the issue, with SEC Chairman Christopher Cox noting that protecting seniors' pocketbooks "is one of the most important issues of our time."
Yet it's not dodgy financial experts or crooked caregivers who are the biggest threat. It's family. Children, siblings, grandchildren, nieces and nephews, and even spouses are the people most likely to rob the elderly, according to elder-law advocates and attorneys. The data that exist -- albeit in a spotty manner -- suggest that financial crimes rank as the third-most prevalent abuse of the elderly.
For victims and family members out to help, the way to combat the crime is to know what to look for and how to prevent it.
• The abuses: Some of the offenses are straightforward: A grandson swipes checks and makes them out to "cash"; a daughter uses the power-of-attorney over Mom's bank account to apply for an ATM card and withdraws money without authority; a son taking care of Dad's finances uses his father's credit card for personal purchases.
Other crimes are more intricate and generally depend on manipulating an elderly person's emotions. Over time, a niece hired to help an elderly aunt persuades her to redirect certain assets to the niece in a will or to designate the niece as the beneficiary of investment accounts or insurance policies; a nephew coerces an uncle to put the nephew's name on the deed to the uncle's house. In some instances, a sibling caring for a brother or sister pays for substandard care and lets bills go unpaid in order to preserve assets the sibling stands to inherit.
• How to detect it: If you're a retiree, you should be wary if a family member you've entrusted to help with your finances rationalizes ways to keep you from your accounts. The person might say the credit-card bill is paid and the checkbook already balanced, so there's no need for you to look at it. That could be a sign the person is trying to keep you from seeing big, unwarranted expenses or checks made out to cash.
If a family member seems eager to take you to the lawyer to sign a power-of-attorney, or talks to you about changing a will, deed or beneficiary designation on financial accounts and insurance policies, be cautious. The same holds true if the person insists on sitting in on your meeting with an attorney to help you understand what's going on. Attorneys are capable of explaining legal arrangements simply -- just ask.
For family members watching from the outside to see if an elderly person is being exploited, a lifestyle change for the elderly relative or the caregiver is a big hint. If Mom or Dad is suddenly cut off from the rest of the family, no longer pursues activities away from home -- such as church functions or a weekly card game -- or gets calls screened by another family member who always has an excuse for why the parent isn't available, "that's a big red flag," says Sally Hurme, an attorney with AARP Financial Security, an educational-outreach arm of AARP.
A family member suddenly driving a new car or living a grander lifestyle than seems reasonable should sound warning bells as well.
Approaching the victim can be tricky; retirees often balk at talking about abuse for fear they'll be seen as incapable of managing their lives. Still, communication is the first recourse. If you're convinced that abuse is occurring, contact an Adult Protective Services agency.
• How to prevent it: Start with legal documents. Retirees often want a trusted family member to manage various aspects of their lives when they can't manage it themselves. A power-of-attorney allows that -- but it can also be a license to steal if misused.
To build in safeguards, structure the document to limit what your agent can do and the accounts that are accessible. Stipulate that someone else -- a lawyer, an accountant or a different family member -- receive routine account updates, and ask your financial institution to send duplicate copies of trading records and account statements to this third party.
Establish a relationship with a local elder-law attorney (you can find one through the National Elder Law Foundation, www.nelf.org1). These lawyers can help set up legal safeguards. More important: They can read between the lines if you show up with someone else in tow looking to change your will or power-of-attorney.
"When you've worked with so many families, you begin to be more aware of certain traits in people that can be signs of a problem," says Donna Beshaw, president of the National Academy of Elder Law Attorneys. Such attorneys are likely to request time to speak with you alone to gauge what might be happening behind the scenes.
Finally, if you are a retiree, listen to outside observers. You might not want to believe a family member is exploiting you, but outsiders often have a clearer view. Hear what they're saying. Then, look for the signs yourself
Sad story.
On the other side though when my grand father passed away my dad was in charge of what he left, which wasn't a lot. Dad had 3 brothers and two sisters and he sent them checks for about $1500 each with a detailed account of what grampa left and funeral expenses etc deducted.
Dads sisters and brothers lived no where close to grampa but dad did and he took care of him in his final months of life.
One by one all 5 of the checks came back to him with notes attached saying in different words, "you keep the money, you took care of pop when he needed it".
They are doing it already.
Terri Schiavo's death exposed this under-reported culture of death.
That's not a "proper" strategy, it's a dishonest and unethical strategy.
Nothing new here - in the 18th century arsenic trioxide was called "inheritance powder"
Terri showed but one spot to most people. Who is watching the broader chicken coop?
Wow. My 86 year old mother has lived with me for eight years (She requires round the clock care.). My three sisters live a considerable distance away, yet visit when they can. Each of them have expressed the same sentiments as your uncles. They think I deserve everything. Who am I to argue? ;-)
How sad.
However we have to be careful, there are government bureacrats who would welcome mandatory senior homes where they could "take care" of senior citizens and their money.
Even decide how old they should allowed to be before they are "too old."
Just saying we need to be cautious.
I'm not surprised. I am totally amazed by what happens to people when a chunk of money is involved. I think they should do a reality show on it. Eating worms is nothing to what I have heard. These people who you would think would be civil to their relatives, turn into near animals.
This is a proper strategy because the govt. rules are wrong.
It is the govt. that is the problem.
This is a very old story in Florida. It was an old story 35 years ago when I was in law school. Some things are eternal. This, sadly, is one of them.
Glad I walked away as I'd rather not be associated with them in any way.
I see this especially happening now that the standard of living has risen, along with the culture of consumerism and the pressure to appear successful. People will stop at nothing to maintain their lifestyles.
Makes perfect sense that the first victims of Moral Relativism would be close relatives.
Nobody will screw you out of money better than family.
Of course the elder-law advocates and attorneys claim that family are the biggest threat.
Why would they rat out one of their own? They don’t.
But the truth is guardians and their attorneys often abuse, neglect and exploit guardianship wards but too many times they are never held accountable. Guardians routinely force their victims into nursing homes so they can sell off real estate and personal belongings, converting to cash so they can over bill, double bill, downright fraudulently bill until all of the hard earned money and assets of the ward is in the guardians and attorneys pockets. Many victims are left penniless with broken spirits and failing health. Some victims do not survive as they are denied medical treatment and necessary medications. This is happening every day in our country. And it is a crying shame. The worst of it all, is a guardianship ward is stripped of all rights, including the right to complain about the abuse.
Any abuse of an elderly or vulnerable person is unacceptable. And this should include guardianship abuse. Please visit the National Association to Stop Guardian Abuse at www.stopguardianabuse.org for more information about the epidemic practice of guardianship abuse.
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