Q: What can I do to help prevent financial exploitation as I age?
A: The National Center on Elder Abuse defines financial exploitation as the “illegal, unauthorized or improper use of an older person’s resources for monetary or personal benefit, profit or gain, or that results in depriving an older person of rightful access to, or use of, benefits, resources, belongings, or assets.” Exploitation tends to be more prevalent in the aging community, specifically targeting those that are over 65 years old and have some form of mental or physical incapacity.
While we are all subject to financial exploitation, especially in this high-tech world where scamming has become extremely widespread, a member of the elder community who has spent their life accumulating assets and building up their estate, coupled with a physical and/or mental impairment and the difficulty to understand and appreciate their finances, makes for an ideal victim of financial exploitation.
Financial exploitation comes in many forms. It includes, but is not limited to, false or misleading solicitation by hired professionals, such as a financial advisor trying to sell products that are not financially sound; email and telemarketing scams, such as a fake charity requesting a donation; misuse of estate planning documents like a power of attorney; calls and/or texts from someone pretending to be a “known individual” requesting money, or calls/texts from someone pretending to be from a company one uses regularly. Even worse could be abuse perpetrated by close family or friends with access to your accounts. Additionally, those with a physical impairment may be forced to rely on the aide and assistance of others, opening the door for others to take advantage.
How can you be proactive now to avoid financial abuse in the future? As a starting point, know your finances. Keep track of your accounts and the expenses you incur every month. Pay attention to any unusual activity in your accounts, no matter how slight. For example, look for variations to your bank account balance that are out of the norm or changes in ownership that were done without your personal authorization. These are red flags that should be addressed upon discovery.
Additional measures include adding a trusted person as an agent or joint owner on accounts as an additional person monitoring account activity or set up notifications for activity on the accounts. Be sure that all online accounts are password protected and, if possible, require a two-step verification for Login. When it comes to scammers contacting you directly through phone or email, it is important to think before acting. Ask more questions or get a second opinion, seek advice from a known professional or loved one, and withhold personal and financial information unless you are sure it is necessary. Do not click on links in emails unless you know the sender and also are expecting an attachment or link from them. Finally, do not reply or answer calls from numbers you do not know, even if the number looks legitimate. Scammers have become extremely savvy and know that the more familiar an email, call or text looks, the more likely you will respond.
And finally, build a team! Identify trusted family and friends with whom you are able to share personal and financial information. But it is also important to have a team of professionals in place to help guide you and your loved ones during your life and after death. The team should include a financial advisor, accountant, and an estate planning and elder law attorney with whom you have had numerous meetings with and who understands your financial and personal goals.
By Michal Lipshitz, Esq.
Michal Lipshitz, Esq. is a Senior Associate attorney at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.