It’s an unfortunate fact that predators emerge during times of upheaval to take advantage of people. There is a chronic problem of financial exploitation with all of us at risk, and most vulnerably the elderly.
The internet predators are greater and cleverer than ever and remember that the social security administration never makes phone calls.
Your elderly parents may live several hours away, or in another state, and someone in their community gets close to them. Or maybe they have a close relationship with a financial advisor. This person could even be another family member, friend, business partner, hired caregiver, professional advisor, or someone they’ve just met.
Sometimes, when bad actors become involved with your parents’ lives and assets, it can lead not only to a loss of money, but even a loss of personal freedom.
All to often I hear about family discord, because one child needed more help than another throughout their life — the resentment is palpable. Sometimes the bad actor can be our own family and sometimes it is the “new friend.”
At a time when this world could use a bit of kindness and civility, I don’t want to discourage new friendships, but your personal financial matters are not something your “new friend” needs to know about in intimate detail.
Be mindful of what you hear your parents share with others. If your parents are in a limited contact situation of a care facility, they can be too eager to have new friends.
This isn’t meant to make you paranoid or distrustful of the people around you, or of how your parents handle their own lives. It's a call to encourage you and your family to be aware, educated, and empowered in knowing what risks are possible for your parents.
Look out for the following actions we have seen from influencers:
* Preventing important communication between family members;
* Withholding documents from other family members;
* Encouraging financial gifts to recently met connections.
* Naming recently met connections as attorney-in-fact (under a financial power of attorney), or as a joint owner on financial accounts, real estate, and other assets;
* Giving financial advice that may not be in your or your parents’ best interests, but in the interests of the advisor.
Start talking with your parents now about how they want their affairs to be handled. Also, you should immediately investigate any situation where you suspect your loved ones are being taken advantage of.
There have been too many cases of financial abuse or inappropriate influence where family members are too late to stop the bad actor.
Ideally, you know the value of your parents’ tangible assets (home, car, business, stocks) and intangible assets (generational stories, personal relationships, theological legacies).
Additionally, you should be working with an advisor to help you understand how family dynamics and the law will impact you, and everything that matters to you and your parents, when they’re gone.
This article is a service of the Law Office of Lasca A. Arnold, PLLC.
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