Financial abuse of the elderly is a serious tragedy. Although many of our senior adults are more financially savvy these days, this problem is still significant. If you have a friend or family member who is a senior adult, you can help keep them protected from being taken advantage of.
Valerie RumboughWatch for changes that may indicate a problem. Have they said anything about making changes on important documents, such as their will or power of attorney? Have they mentioned making changes to beneficiary designations on accounts and life insurance? Have they been getting a lot of repair work done on their house? Do they appear to be distressed lately?
Although there could be many legitimate reasons for all of these things happening, it may be wise to look a little closer at the situation to determine if something suspicious is going on.
How do you help someone who is experiencing financial abuse? Don’t be afraid to ask if everything is okay. Many times, seniors are embarrassed to admit they have been taken advantage of.
A caring person may make the difference in helping to put a stop to it. The State of South Carolina has a Department of Aging that has a world of resources available to help you, including a list of businesses that can be trusted, as well as several hotlines you can call to report abuse.
For those who have parents that fit this category, you may need to get more involved in their financial affairs to help them make the right decisions. Remember, it is our duty to take care of our senior adults.
Rumbough, CPA, CFP, is chief operations officer with the Baptist Foundation of South Carolina. Contact her at 800-723-7242. In accordance with IRS Circular 230, any U.S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.