Financial Scams & Elder Abuse: How Estate Planning Protects Seniors

Financial exploitation is the fastest-growing form of elder abuse. Thoughtful estate planning can create protections to minimize the risk of becoming a victim.

Understanding Elder Abuse Beyond the Headlines

When we think of elder abuse, dramatic headlines may come to mind—nursing home scandals, caregiver neglect, or outright physical harm. But elder abuse doesn’t always lead to salacious headlines.

Financial exploitation is just as damaging—and far more common. In fact, it often happens at the hands of people the victim knows and trusts.

According to the American Bankers Association, financial exploitation is “the illegal, unauthorized, or improper use of an older person’s funds, property, or assets.” This kind of abuse can devastate retirement savings, undermine a person’s sense of independence, and lead to costly legal battles.

But there’s good news: A well-structured estate plan can act as a powerful defense.

What Does Financial Exploitation Look Like?

It often starts subtly—and becomes obvious only when it’s too late. The abuser is typically someone close:

• • A family member
  • A caregiver or “helper”
  • A friend or romantic partner
  • A service provider, or someone posing as one

Here are a few real-life examples we’ve seen:

• • In one especially troubling case, an adult child misused their parent’s finances for personal gain. It was a painful reminder that even close relatives can cross boundaries, particularly when money is involved.
  • An older adult, living on a modest income, was regularly accompanied to the bank by a companion. Over time, a noticeable pattern emerged—withdrawals that matched the exact amount in the account, right down to the last dollar. Eventually, the situation was brought to court, and steps were taken to prevent further financial control.
    

• • In another case, people who started out assisting an older woman were later found to be helping themselves to her funds. After she was declared incompetent, a conservator had to step in—and pursue legal recovery.

These are just a few examples. The takeaway? Financial exploitation can look like help—until it’s clear it’s theft.

How Estate Planning Helps Protect Against Exploitation

Here are a few tools we regularly use at Promise Law to help clients guard against financial abuse:

Powers of Attorney

Appointing a trusted person to make financial and legal decisions if you’re incapacitated can be a safeguard. But make sure it’s someone whose loyalty is beyond doubt.

Case in point: One man had a POA naming his son—but kept insisting on giving his money to a friend. In cases where mental capacity is borderline, even solid documents may not be enough.

Trusts

Trusts create clear rules for managing and accessing assets. They make it harder for bad actors to divert funds for their own gain.

• • • When set up correctly, a trust can be a deterrent—predators see the legal protection and know access won’t come easily.

Health Care Directives

This outlines who can make medical decisions for you. It may not seem financial, but when someone is in poor health, financial decisions often follow.

• • • A health care directive ensures you have a trusted voice advocating for your care—and your financial interests—when you’re most vulnerable.

Guardianship Planning

Planning ahead for guardianship ensures you choose the person who will make personal and medical decisions if needed.

• • • This reduces the risk of someone trying to take control during a time of crisis.

What You Can Do Today

Whether you’re planning for yourself or helping a loved one, here are three ways to start protecting against elder financial abuse:

If you’re the older adult:

1. 1. 1. 1. Start the conversation with those you trust.
         2. Share your wishes clearly—for health care, finances, and who should step in if needed.
         3. Put it in writing with the help of a legal professional.

If you’re the caregiver or concerned loved one:

• • • • Look out for:
        • Sudden banking changes
        • Isolation from trusted friends and family
        • Unexpected document updates
      • Choose a quiet time to raise concerns compassionately.
      • Offer to attend a planning consultation or workshop together.

Ongoing Protection with Our PIE™ Membership Program

Planning documents are a great first step—but staying protected means keeping those documents and plans up to date.

That’s where our PIE™ Membership Program comes in. This annual maintenance plan ensures your documents remain aligned with your current wishes and circumstances. But it also does something more:

• • • It creates regular, structured check-ins, which can help detect potential signs of financial exploitation early.
    • It opens the door to clear-eyed conversations about shifts in income, assistance from others, or changes in trusted relationships.

Through this program, we’ve helped clients identify when someone might be “helping themselves” more than they’re helping. When the right safeguards are in place, it’s easier to remove those in positions of trust who no longer deserve it.

You Don’t Have to Navigate This Alone

At Promise Law, we support individuals and families through these complex conversations with compassion, insight, and real-world solutions. Whether you’re creating a plan or responding to concerns, we’re here to help.

Attend a free workshop and get started with a complimentary personal consultation with an attorney. Call us at 757-895-7759 for more information or to RSVP for an upcoming workshop.

Your future deserves protection—and we’re here to help you build it.