Elder financial abuse in estate planning is an ongoing concern. Unfortunately, some caregivers or even relatives may take advantage of an aging person when they are most vulnerable.
Below, we outline critical details about elder financial abuse in Windsor, including what it is, the many forms it takes and what you can do to protect a loved one.
Do you have concerns that your parent or aging relative is a victim of elder financial abuse? If so, our knowledgeable Windsor estate litigation lawyers at Greg Monforton and Partners are ready to help you.
Need legal help from an estate litigator? Call Greg Monforton and Partners for a confidential consultation today. (866) 320-4770
Understanding Elder Financial Abuse in Estate Planning
Elder financial abuse in estate planning involves the exploitation of an older adult’s assets. An all-too common example is when an individual or individuals, seek to manipulate the estate plans of an aging person when they are most vulnerable.
One common way this happens is when an estranged relative suddenly gets involved with an elderly person who is fading, mentally and/or physically. It is very suspicious if the intentions of a will change drastically during this time.
Perpetrators of elder financial abuse are often caregivers, trusted advisors or even family members who stand to benefit from changes to wills, trusts or beneficiary designations. Estate litigators often encounter cases where an elderly person’s estate plan has been altered under dubious circumstances. These situations are a primary cause of disputes among beneficiaries or challenges to the validity of estate documents.
What Are Some Examples of Elder Financial Abuse Leading to Estate Litigation?
Elder financial abuse in estate litigation occurs in many different ways, including:
- Undue influence in will creation or modification
- Misuse of Power of Attorney, leading to depletion of assets
- Coerced changes to beneficiary designations on accounts or insurance policies
- Manipulation of joint accounts
- Fraudulent transfer of property titles
- Pressure to make gifts or loans that impact the estate’s value
- Taking advantage of an individual’s diminished mental capacity
These actions typically come to light after an elderly person’s death, when discrepancies in the estate become apparent. Sudden changes to wills, unexpected asset transfers or significant estate depletion are all circumstances that may trigger litigation amongst beneficiaries.
What Are Some Red Flags Indicating Possible Elder Financial Abuse?
These common events often indicate an elderly individual may have become a victim of financial exploitation. Estate planners, family members, trusted financial advisors and caregivers should remain vigilant for:
- Unexpected changes to wills or trusts: If an elderly person suddenly modifies a long-standing will or beneficiary to include a new caregiver.
- Sudden transfers of property or assets: A big red flag is if an ill or aging individual suddenly transfers their house deed to an estranged relative, caregiver or new “friend.”
- Large, unexplained withdrawals from bank accounts: This is especially suspicious if the elderly person does not remember the withdrawal or is suddenly left without funds.
- Unusual patterns of spending or ATM usage: If someone who rarely uses an ATM suddenly begins making multiple transactions in a day, week or month, it is a big red flag.
- New “friends” showing excessive interest in finances: Be alert to new “friends” suddenly hanging around your aging parent, especially if they ask a lot of questions about money.
- Missing valuables or personal belongings: Notice missing family heirlooms? Valuable personal belongings are easy to take without people noticing, and there is no transaction trail.
- Unpaid bills despite adequate funds: It is worth investigating the situation if a financially independent elder family member’s utility bills or other bills suddenly go unpaid.
- Signatures on documents that look forged or suspicious: Be alert for signatures on checks that look different, jagged or shakier than an aging parent’s normal signature.
- Abrupt changes in power of attorney: Did an elderly parent suddenly grant power of attorney to a new “friend,” caregiver or other person they barely know?
- Unexplained depletion of assets: Be concerned if an elderly person’s savings or checking balance has sudden and significant drops for no apparent reason.
- Atypical or unnecessary purchases: Expensive computers or other electronic gear for an aging parent who is unable or has no history of using technology is another red flag.
- Isolation from family and friends: Question if your aging parent’s caregiver begins restricting visits or monitoring phone calls, or isolating your loved one from family and friends.
- Reluctance to discuss financial matters: It may be suspicious if an elderly parent is suddenly anxious or evasive when you try to question recent or unusual bank transactions.
- Confusion about recent financial transactions: If an elderly loved one does not recall authorizing certain bank transfers, especially large ones, it is worth investigating.
Are There Legal Challenges in Proving Financial Abuse in Estate Cases?
Proving elder financial abuse in estate litigation definitely presents some unique and complex challenges. Since the primary victim is often deceased, it is harder to establish the nature of their true intentions or their mental state.
Key issues in estate cases may include:
- Demonstrating lack of testamentary capacity at the time of document execution
- Proving undue influence, which often occurs without witnesses
- Gathering evidence of manipulation or coercion, especially when family members are involved
- Establishing the elder’s vulnerability due to physical or mental decline
- Tracing and documenting financial transactions that may have occurred over extended periods
Estate litigators must often rely on circumstantial evidence, expert testimony on capacity, and financial forensics to build a case. The burden of proof can shift depending on the nature of the claim and the relationship between the parties involved.
Remedies and Recovery: Navigating Estate Litigation for Elder Abuse Victims
When elder financial abuse is suspected or proven in estate cases, several legal remedies are available:
- Will contests to invalidate fraudulent or coerced estate documents
- Actions to remove or surcharge executors or trustees who failed to protect the estate
- Litigation to recover misappropriated assets or void fraudulent transfers
- Accounting actions to trace and reclaim misused funds
- Constructive trust claims to recover property wrongfully obtained
- In some cases, criminal charges against the abuser
Should I Seek Legal Help for a Case of Elder Financial Abuse?
Ontario has many laws implemented to help victims of different types of elder financial abuse. One such law is Ontario’s Substitute Decisions Act, which offers families crucial protections, empowering them with legal means to intervene when abuse is suspected.
Victims of elder financial abuse and their families may also benefit from estate litigation lawyers due to their specialised, in-depth knowledge of complex laws.
Here are some additional reasons why you should seek legal help for a case involving elder financial abuse:
- Extensive knowledge of complex estate and elder abuse laws
- Understands how to effectively navigate the legal system
- Gathers and presents compelling evidence to support your case
- Challenges suspicious transactions that may impact your claim
- Knows how to invalidate documents created under duress
- Handles sensitive family dynamics professionally
- Provides objective guidance in emotional situations
- Recovers misappropriated assets
- Seeks compensation for the estate
- Protects the elderly victim’s true wishes
- Safeguards interests of rightful beneficiaries
- Maximizes chances of a favourable outcome
- Ensures justice is served for the elderly victim
Need Legal Help From an Estate Litigation Lawyer? Contact Our Trusted Firm Today
If you have concerns about an aging family member being a victim of elder financial abuse, we recommend seeking legal help right away. These cases are often complex, and deadlines apply.
Our firm has staff available to take your call 24/7. Your consultation is completely confidential and there is no obligation to move forward.
Greg Monforton and Partners. Experience you can trust. (866) 320-4770