5 Common Forms of Financial Exploitation and Elder Abuse (Florida)

Some say that Florida is a scam capital of the country, with huksters and scammers trying to take the shirt off your back.  Financial  exploitation?  It’s a problem, particularly for our senior population which becomes more vulnerable as they age, perhaps lose a spouse or life partner and become more vulnerable.  Here are 5 Common Forms of Financial Exploitation that Florida probate lawyers see here in Palm Beach County probate cases.

1. Changing the Names on Bank Accounts (Title on Bank Accounts).  Putting someone on a bank account title, such as a joint owner or a co-owner.  Is that person now a true co owner?  Can they withdraw $$?  Or maybe the new name on the bank account just has a right of survivorship?  But, Florida permits convenience accounts which means that a person who is added to a bank account can only exercise rights for the convenience of the true owner.  How do  you tell the difference and who inherits the bank account upon the death of the real owner?   Getting on a Florida bank account is a common form of financial exploitation.  Access to money .
2. Cash Withdrawals.   Look out for large withdrawals of cash, either from checks written to “cash”, to someone new in the life of the bank account owner or a bad caregiver.  Also, be on the watch for ATM withdrawals with greater frequency.  Consider the spending habit of the person who really owns the account and how often he or she would pull money out of their bank account, and in what dollar amounts.
3. Mis-use of POA.  Florida powers of attorney can be very dangerous documents when they fall into the wrong hands.  While they are intended to assist the person who created the POA, called the “principal” under Florida durable power of attorney law, they can also be a common form of elder financial abuse when the POA is mis-used.  Remember: POA’s can be powerful documents which give a lot of authority to someone.   Trust always seems to be a factor in cases of financial exploitaiton, but forgetfullness can be a factor when someone has diminished mental capacity.  One last point on Florida powers of attorney and mis-use:  Florida has a brand new durable power of attorney law which should be reviewed.   Even though the power of attorney or “agent” is a fiduciary, Florida estate lawyers often see the POA as a tool to take financial advantage of someone with money.
4. Changing Beneficiaries.  When a “friendly” neighbor or mis-guided caretaker has access to one’s residence, such as on visits, they can see your parent’s net worth.  How?  When a bad caregiver or home health worker has access to a senior citizen’s apartment or condo, there’s mail lying around.  Bank and financial statements.   Bad things can happen when those financial statements for 401(k)’s, IRA’s, mutual funds and brokerage accounts come under the watchful eye of one with bad intentions.   Did they put your frail Aunt Louise on the phone with the bank, or maybe they called that mutual fund company with your Uncle Dom and changed the beneficiary designation or the life insurance?
5. Gifts & Deeds.   Probate in Palm Beach County sees too many cases of a elderly Palm Beach resident who has “deeded” the condo to someone they’ve only known a short time.  “He/she wanted me to have it.  A gift.”   Yea,….right.   Financial abuse can be bold.  It can take the form of a deed of real estate or large gifts.   Remember:  Florida gift law requires that the person making the gift intends to create a gift.  For that element of a valid Florida gift, you need mental capacity:  competence to understand what you are doing.

If an aging relative of yours lives in Florida, be on the lookout for danger signs including isolation, need for companionship, loss of a spouse recently, new people in their lives who seem to be involved in financial affairs very quickly and decline of health.  Vulnerable adults in Florida deserve our protection.  If you believe someone may be slipping or slowing down, you have to wonder if competence and mental capacity are issues.  In that case, you may want to consider a guardianship to protect the person’s property.