Don’t give away the power of attorney
If someone tries to convince you to give them power of attorney to make financial operations on your behalf or transfer ownership of your property to them, you might want to think twice before giving in to their requests.
Financial abusers might also try to manipulate you into modifying your estate plans and giving them a bigger chunk of your assets or even make them sole heirs. In certain states such as Illinois and Nevada, the law states that caregivers are “prohibited transferees”, meaning they cannot be named as beneficiaries of your will, but there are still methods to dodge such rules.
Identify the vulnerable groups
According to financial experts, between 3.5% and 20% of elder adults become victims of financial abuse every year, suffering financial losses of up to $36.5 billion. More than that, just 1 in 44 elder financial abuse cases are officially reported, according to the National Adult Protective Services Association.
One of the reasons why seniors risk being financially abused is because they are more isolated than other demographic groups, especially after losing a spouse. “People who have ill intentions may exploit the isolation and loneliness of many seniors who are open to making a connection with anyone,” says Marcy Keckler, vice president of financial advice strategy at Ameriprise Financial.
More than that, mental but also physical decline makes it easier for ill-intentioned relatives or even strangers to step in and “help” them for their own financial gains.
Related: 25 US Cities With the Highest Percentages of Working Seniorsshut
