Protecting Your Parents from Financial Abuse

Dealing with finances can be a delicate situation. More seniors are continuing to live independently or with some assistance and handling their own finances. As they age, their ability to make sound decisions can be impaired by Alzheimer’s or dementia. They also become at risk for scams from individuals who may try to take advantage of their age or generosity. Protecting your parents from financial abuse becomes a concern because you want them to be able to live the best life possible and afford the care they need.

Being proactive and taking the proper steps to protect your aging parent can improve their financial security. Stay alert about any recent scams occurring. Educate yourself about how elder financial abuse happens and how to identify risks.

Hire Professional Help

Financial planners are available to help you sort through your parent’s finances and establish safeguards against scams and abuse. An attorney can draw up wills, trusts, and power of attorney documents so that your parent can designate how they want their funds handled, and you and your family can abide by their wishes. Having co-signers as power of attorney can provide additional protection because they hold each other accountable.

Monitor Bank Accounts

Frequently review bank statements for any suspicious activity. Look for large sums that are spent or transferred that you were not aware of ahead of time. Pay attention to where money is going. Oftentimes the bank has services available to monitor activity and alert you to anything out of the ordinary.

Another option is to set up a separate account for your parent to use for their daily transactions. Limit the amount of funds available so if someone should try to take advantage of them or get their account information, they do not have access to the bulk of their finances.

Discuss with the Family

Make sure that the family is all on the same page about how your parent’s finances will be handled. By designating one or two people to be in charge, this can help to reduce confusion and make oversight easier. If any service workers or technicians come to the house, make sure that they have been researched ahead of time and when possible, have someone else there to supervise. Take the time to research caregivers as well to ensure they are of high quality, trustworthy, and have your parent’s best interests in mind.

Have honest yet caring conversations with your parent about why you are looking after their finances. Let them know that it is for their own safety and protection, not because you don’t trust them or think that they can’t handle things. Allow them to retain some control with safeguards in place. Working together, you can help to protect their financial future and reduce their risk for fraud or abuse.