Capital District - NY Estate & Elder Law

SAFE Act May Come to Rescue in Elder Financial Abuse

 

Elder financial abuse is very costly, at billions of dollars annually, as well as the emotional toll on the elderly, as the scams become more sophisticated, according to Forbes in ““After SAFE Act Passage, The Battle Against Elder Financial Abuse Remains Far From Over.”

The aim of the Senior Safe Act is to encourage all types of financial institutions to play a larger role in fighting against elder financial abuse. The law, which was modeled after the Senior$afe program created in Maine, requires financial institutions to train employees on detecting activities that may indicate elder abuse is occurring. If the employees are trained, the Senior Safe Act also provides a reporting process and liability protection for those who report the possible abuse.  It is thought that the liability protection would make those individuals reporting the possible abuse more proactive.  However, there are still some problems with this.

Some advisors report being reluctant to report any client who seems to be suffering from mental deficiencies or elder abuse. The problem, advisors say, is that they are not trained and won’t feel confident in making a judgement about competency. Some court cases have put the onus on the advisor, when selling certain products or strategies but advisors lack both the training and the ability to make a medical diagnosis of senior clients. Without the ability to identify competency, it is very likely that any reporting will only take place well after the elder financial abuse has taken place.

Another issue is that family members or friends are typically the ones who commit elder financial abuse. The victim usually does not want to press charges, fearing that the person will become angry with them and withdraw their emotional support. Being dependent upon the same person who may have perpetrated financial abuse, puts the elderly person in a no-win situation.

Elder abuse prevention, financial and otherwise, should start years in advance, at the first signs of declining physical and mental health. It should begin with a plan for managing financial assets and having the proper legal documents in place, including a will, power of attorney, general durable power of attorney, healthcare directive and other estate planning documents.

An estate planning attorney can advise you in creating an estate plan that fits your unique circumstances and protects all members of your family.

Reference: Forbes (July 23, 2018) “After SAFE Act Passage, The Battle Against Elder Financial Abuse Remains Far From Over”

 

 

Agencies Plan Webcast on Financial Abuse of Elderly

 

The government has increased its efforts in recent years to combat the financial abuse of the growing elderly population in the U.S. Despite these efforts, many people believe that elder abuse is still on the rise.

As part of this campaign, two federal agencies have announced a joint webcast on the issue, according to   Think Advisor in "Treasury's Crime Unit, Consumer Bureau Team up on Elder Fraud Prevention."

The Bureau of Consumer Financial Protection and the Treasury Department’s Financial Crimes Enforcement Network are urging coordination between various groups involved with preventing the financial abuse of the elderly. Coordinating between different agencies is important, since different agencies need to work together to not only prevent abuse, but also to detect it when it happens and prosecute it.

Reference: Think Advisor (May 29, 2018) "Treasury's Crime Unit, Consumer Bureau Team up on Elder Fraud Prevention."

 

This Is the Best Month to Learn Elder Law Options

 

No elderly person should have to suffer from abuse of any kind. Now is a good time for the elderly to get informed about their legal options for all sorts of things, according to News 4 San Antonio in "Protecting senior citizens from abuse and providing legal services."

May is National Elder Law Month. In many localities, attorneys and senior advocates offer free seminars during the month, so people can learn about relevant services available in their areas. If there are no informational events going on in your area, you can still learn about your options by visiting with an elder law attorney.

The attorney will not only know about legal services for elderly people but other things as well. Most attorneys who specialize in elder law, keep informed about other services for the elderly in their communities, so they can help their clients with an appropriate referral, when needed.

An elder law attorney can advise you on the benefits and rights of the elderly.

Reference: News 4 San Antonio (May 14, 2018) "Protecting senior citizens from abuse and providing legal services."

 

 

Elderly are Facing an Increase in Financial Crimes

 

A few states have state level investigative units dedicated to fighting elder financial abuse.  However, that may not be enough, according to the Brookings Register in "S.D. a national leader in battling elder fraud."

Criminals target the elderly more and more every year, because they are often an easier target. The loss to elderly Americans is in the billions. This is a national problem that requires national attention to fix completely. However, state governments also need to do their part to protect elderly people in their jurisdictions.

Most are not doing enough. 

A few years ago, South Dakota decided there was a problem and started a commission to make recommendations about how the problem should be addressed. One of the results was to create a special unit in their attorney general's office dedicated to investigating and prosecuting the financial abuse of the elderly. More states should do the same.

An elder law attorney can advise you, if you suspect that an elderly person is being exploited.

Reference: Brookings Register (May 8, 2018) "S.D. a national leader in battling elder fraud."

 

States Try to Protect Elderly from Abuse

 

Many states have guardianship laws that sometimes prove to be ineffective in protecting the elderly from abuse.  Therefore, state legislatures are looking closely at guardianship laws, according to the Reading Eagle in "Bill would require background checks for guardianship."

One issue that has caused controversy in Pennsylvania is a proposal that would bar felons from becoming guardians. While that might seem like an obviously good thing at first glance, opponents of the idea point out that it would apply to people who committed felonies in the distant past without further legal problems.

Whatever your opinion is when it comes to felons serving as guardians, it is good that legislatures are discussing the issue of updating guardianship laws to better protect seniors from abuse.

If you suspect elder abuse is happening contact an elder law attorney or government official.

Reference: Reading Eagle (April 14, 2018) "Bill would require background checks for guardianship."

 

 

Putting a Quick End to Elder Abuse

 

 

While suspected elder abuse is being investigated and going through the legal system, the abuse can continue.  However, some New Hampshire legislators are working on solving the problem, according to Seacoast Online in "House bill would help elder victims of financial abuse."

The idea is to create a fast track for disabled people and the elderly to get legal relief, similar to how victims of domestic violence can get protective orders. Some elderly victims do currently qualify for domestic violence protective orders but not all.

The process varies from state to state.  However, all states have some sort of process, whereby a domestic violence victim can get a quick protective order from a judge for immediate relief. Giving the same level of protection to victims of elder abuse, would speed up the process greatly.

An elder law attorney can advise you, if you have any questions about your state laws and suspected elder abuse.

Reference: Seacoast Online (March 17, 2018) "House bill would help elder victims of financial abuse."

 

 

Federal Government Cracks down on Elder Fraud

 

Local law enforcement and elder law attorneys are sympathetic when they hear of scams aimed at the elderly, but they are often unable to do much. The government has a plan to bring the scammers to justice, according to a recent FBI announcement "Law Enforcement Action Aimed at Those Who Victimize Senior Citizens."

Federal law enforcement officials working with other agencies have announced massive actions taken against the perpetrators of elderly fraud. In fact, 250 people have been charged.

It is believed that those charged were responsible for victimizing one million elderly persons, at a cost of approximately $600 million. This action comes on top of 200 cases filed against individuals for elder fraud issues last year.

Anyone suspecting fraud against the elderly should contact authorities.

Reference: FBI (Feb. 22, 2018) "Law Enforcement Action Aimed at Those Who Victimize Senior Citizens."

 

 

Scams Continue to Work against Elderly

 

 

Among the most common scams aimed at the elderly, involve their grandchildren or the IRS, according to the Minneapolis Star Tribune in "As senior population grows, so do scams targeting their money."

A common one is for an unknown person to call a grandparent and tell him or her that a grandchild is in trouble and needs cash wired immediately. The trouble normally consists of a problem with the police, where bail money is needed.

Another is for a voice message to be left on an elderly person's phone claiming to be from the IRS. The elderly person is instructed to call a number right away, for their last chance to settle a problem with the IRS by sending money.

Those schemes might seem like obvious scams to most people, but they continue to work on many of the elderly. The scammers seek to take advantage of the elderly person's diminished capacity and by demanding the money right away, the victim does not have the time to think through the request or ask anyone else about.

These and other scams against the elderly are unfortunately increasing.

 

 

New Broker Rule in Effect

 

FINRA, a self-regulatory agency for brokers, has just implemented a new rule to help stop the financial abuse of the elderly even before it begins, according to Consumer Reports in "New Ways to Prevent Elder Financial Abuse."

Financial abuse often goes undetected, until it is too late to do anything about it. Some abuse is never caught at all. However, under the new FINRA program, brokers are required to ask all of their customers for the contact information of a trusted person whom the broker can contact if financial abuse is suspected. If a broker suspects a client is being exploited, then a hold can be put on the account for 15 days. It can also be extended for another 10 days, if necessary.

If you suspect abuse, contact law enforcement or an elder law attorney.

Reference: Consumer Reports (Feb. 2, 2018) "New Ways to Prevent Elder Financial Abuse."

 

Wisconsin Allows Recordings to Protect the Elderly

 

The state of Wisconsin has initiated a program to help law enforcement and family members prove that elder abuse or neglect is occurring, according to WBAY in "Wisconsin allowing hidden cameras to capture elder abuse and neglect."

A few caregivers neglect and even physically abuse the people they are supposed to care for and protect. When family members suspect this is happening, they often go to law enforcement. However, proving the abuse can be difficult without witnesses.

The state will distribute small digital cameras to local law enforcement agencies. If family members report that they suspect elder abuse, law enforcement will give them a camera they can hide in the elder person's home.

The cameras can be kept up to 30 days and will record everything that happens on a memory card. When the camera and the memory card are turned back in, the recordings can be watched to see if there has been any abuse.

Reference: WBAY (Feb. 6, 2018) "Wisconsin allowing hidden cameras to capture elder abuse and neglect."