Financial Abuse

Financial abuse of the elderly takes many forms. It can involve someone close to an older person forcing him or her to sell personal property, or stealing his or her money or possessions. Sometimes, a relative or caregiver will take a pension cheque from a senior, or coerce a senior into cashing the cheque and handing over the funds. The wrongful use of power of attorney is elder abuse. Elders are also sometimes abused through fraud or forgery. These are all crimes.

Financial abuse is quite common -- a recent study in Canada suggested that at least 8% of seniors report incidents that could be considered financial abuse. Adult children take money from their parents’ bank accounts, take loans which they never repay, and sometimes obtain title to the family home. The average amount of money involved in a single case of elder abuse is $20,000. The most frequent offenders are daughters, who most often care for aging parents. Few seniors are willing to report a family member; they are more likely to just resign themselves to the loss.

• the elder is unable to pay his or her bills and has no explanation
• he or she suddenly begins withdrawing money from accounts
• his or her living conditions do not match his or her assets
• possessions of the elder have disappeared and he or she has no explanation.

The more control seniors maintain over their finances, the fewer opportunities there are for abusers to misappropriate funds or property. It is important to explain financial abuse to older people so that they understand their rights and options. Sometimes, all an elder needs is information about alternate ways of handling money (e.g. direct deposit, or power of attorney). If theft or fraud has occurred, the police may be called in if the senior agrees. Elders who are mentally impaired are especially vulnerable in relation to financial abuse. In such cases, where financial abuse is suspected, the police and/or the Public Trustee’s office (or its equivalent) can be contacted to investigate.