It’s the scenario we all shudder just to imagine: suddenly, an elderly loved one doesn’t seem to be as sharp as they used to be. Next, they have a new best friend we’ve never met, or a surprising new interest in an offbeat philanthropic cause. We hate to be nosey, so we avoid asking too many questions, but what if a loved one is becoming a victim of financial exploitation in the face of a capacity decline? By proactively assisting those you care about to put comprehensive estate and care plans in place before their capacity becomes something to worry about, you can help them protect their hard earned life savings. Read on for advice.
Stay Ahead of Capacity Declines
As The Estate Lawyers point out, financial exploitation is a form of elder abuse, which is “all too prevalent,” making it critical for estate planners and families to work together, “recognize the signs early and take decisive action.” Though we all hope to avoid capacity declines as we age, they can and do occur, so In the best case scenario, a holistic care and estate plan is put in place well before mental clarity comes into question. For example, estate planning components, like designating a Power of Attorney to make financial decisions in the event of incapacity, and a Health Care Proxy to make medical decisions, can only be completed when the individual signing them has the capability to make responsible choices. Ensuring trusted individuals are prepared to step in for us should the need arise is one of the most important aspects of estate planning, and as Lawyer Lisa advises: “The best time to plan is before a crisis, while you have the full ability to make thoughtful choices. Delaying only limits your options—and increases the risk that important decisions will be made by others. Take the time now to create a plan that protects you and the people you care about. It’s one of the most important gifts you can give your family—and yourself.”
Absent advance planning, we can of course still look out for the elderly people we care about. The Estate Lawyers encourage: “By staying vigilant and informed, we can protect our aging loved ones and ensure their wishes are honored.” Signs of elder abuse to look out for include:
- Unexplained financial transactions or sudden changes in spending habits.
- Suspicious changes to estate planning documents, especially favoring new or previously uninvolved individuals.
- Isolation from friends, family, or long-time advisors.
- Over-involvement by a caregiver or relative in financial or legal decisions.
- Sudden changes in living arrangements or reluctance to discuss finances.
- Unusual gifts or asset transfers without clear justification.
- Estate planners should be especially alert when a client appears confused, pressured, or is accompanied to meetings by someone who dominates the conversation.
In addition to taking signs of cognitive decline and undue influence seriously, families can try to monitor financial accounts regularly, and set up trusted contacts with financial institutions. Those steps are best taken well before they seem necessary. In the event that the financial exploitation of elders is suspected, attorneys recommend swift action, and the legal remedies, based on state protocols, could include:
- Conservatorships to protect the elder’s assets and decision-making.
- Elder abuse restraining orders
- Litigation for financial restitution and punitive damages.
- Contesting estate documents based on undue influence, fraud, or lack of capacity.
Helpful To Know: Fiduciary, Conservator and Estate Bonds?
Frequently the representative appointed to administer an estate plan, such as an executor, personal representative, or trustee, is required to obtain a type of bond, referred to generally as an estate bond. The purpose of an estate bond is to safeguard the estate and its beneficiaries, in accordance with the arrangements made through estate planning, and the law. An estate bond is sometimes alternatively named specifically based on the role of the fiduciary. For example, an estate bond may be referred to as a conservator, trustee, guardianship bond, or an executor or personal representative bond.
Colonial Surety Company makes it quick and easy to obtain estate and fiduciary bonds of all kinds. A user-friendly online service allows you to quote and obtain a bond that is instantly available to download or e-file. Representatives, conservators and all fiduciaries can efficiently obtain their required bonds here:
Fiduciary, Conservator and Estate Bonds Here
Elder Law Attorney?
Secure the fiduciary bonds needed for all your cases with just a few clicks on The Partnership Account® for Attorneys. Just select the bond needed, send it to your client for payment, and then download, e-file or print the bond. That’s it!
Our fiduciary bonds include: administrator, estate, executor, guardian, personal representative, probate, surrogate, trustee, conservator and the list goes on. Of course we have court bonds too, including: appeal, supersedeas, injunction, replevin, receiver and more.
Founded in 1930, Colonial Surety Company is a direct writer of a wide range of bonds and insurance products. Colonial is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed, and licensed for business everywhere in the USA.