Your grown daughter doesn't pay her bills on time. Your son lives way above his means. You love your kids, but you also worry their irresponsibility toward their own finances means they will be poor caretakers of your finances should you need help as you age. But have you given any thought to the possibility that your children might pilfer your money?
Experts estimate that between 60% and 90% of financial elder abuse is committed by family members. Law-enforcement officers and social workers believe the crime will increase as the population ages, but they are generally ill-equipped to investigate it.
No one knows exactly how many cases of financial elder abuse take place, but experts estimate as many as one out of five cases goes undetected. Many victims don't disclose they've been victimized due to shame and embarrassment or worries about retaliation.
It's also a crime that cuts across social classes: Actor Mickey Rooney went public earlier this year with his own victimization at the hands of a relative, while the high-profile trial of the son of wealthy socialite Brooke Astor encompassed charges of estate tampering and elder abuse.
Running the risk of losing it all
The National Committee for the Prevention of Elder Abuse, dedicated to the prevention of abuse of seniors and adults with disabilities, received a message that exemplifies financial elder abuse:
"My wife and I heard from her sister . . . that their mother confessed their brother has talked Mom and Dad [age(s) 81 (and) generally sound mind] out of there (sic) entire $4 million retirement savings and they have nothing but Social Security left."
The offender is often an adult child who still relies on his or her parents for support. "Research suggests that increased risk of elder financial abuse by adult children is associated with such factors as the perpetrator's unemployment, inability to drive and financial dependence upon the older person," says Winsor Schmidt, a professor of family and geriatric medicine at the University of Louisville.
Who is at risk?
Schmidt says studies indicate an older person may be at greater risk of financial exploitation when the individual has problems completing ordinary yet vital tasks, such as using the telephone or doing housework.
Other conditions that predispose the elderly to financial abuse: dementia and depression. With families scattered in our mobile society, says Schmidt, chances are greater than ever that someone can steal from or mismanage the assets of a parent without his or her siblings finding out.
