Elderly financial abuse by family members can devastate your loved one’s finances. Acting quickly is essential to protect their resources and peace of mind.
When most people think of elder abuse, physical abuse or neglect often comes to mind — but financial exploitation is just as common, although it can be far more subtle.
Elder financial abuse refers to the unlawful or improper use of an older adult’s assets (e.g., undue influence, exploitation, theft, mismanagement of funds, coercion). Seniors are prime targets, particularly when they rely on others for support or have entrusted loved ones with access to their finances.
As aging individuals experience cognitive decline or reduced awareness, they may not be cognizant of those attempting to financially exploit them — especially if the abuser is someone they trust, like a child or grandchild. This can make financial abuse by family members difficult to detect and emotionally complex to address.
Consider the example of a son who regularly visits his elderly mother under the guise of helping her pay bills and manage finances but secretly transfers her money into his own accounts. If the mother discovers the theft, she may hesitate to take legal action to avoid conflict with her son, while a similar act committed by a stranger would likely result in immediate reporting.
Even when families attempt to handle matters privately, ignoring elder financial abuse can quickly drain an elder’s resources, putting their financial security and quality of life at serious risk. That’s why elderly financial abuse by family members must be addressed promptly and effectively, even if it does not involve formal litigation.
Remaining vigilant is crucial. Subtle signs — such as unusual withdrawals, missing possessions, sudden changes in estate plans or secretive behavior — can indicate exploitation. Playing an active role in your loved one’s financial life, monitoring for red flags, and seeking professional guidance can help prevent senior financial abuse by family members or stop it before it causes irreparable harm.
While it can be difficult to imagine a family member causing harm, financial stress can drive individuals to act uncharacteristically, sometimes at the expense of those they love most. When it comes to elder financial abuse, it is always better to act on concern than to give anyone the benefit of the doubt.
What Percent of Elder Financial Abuse Is by Family Members?
According to the National Adult Protective Services Association (NAPSA), an alarming 90% of elder financial exploitation is perpetrated by family members or other trusted individuals.
The prevalence of this abuse is significant, with one in 20 seniors reporting some form of suspected financial wrongdoing in the recent past. Even more concerning, only one in 44 cases of elder financial abuse is ever reported, highlighting how frequently these crimes go unnoticed and unaddressed.
Telltale Signs of Elder Financial Abuse by Family Members
If you have an elderly loved one, it’s essential to recognize the warning signs of elder financial abuse by family members so you can protect both your loved one and their assets from those who might seek to exploit them for personal gain.
Keep in mind that the list below is not exhaustive. But the absence of these signs also does not mean your loved one is safe from financial exploitation. Rather, these indicators are intended to help you spot potential red flags and take action if a family member or other trusted individual might be taking advantage of an elder in your life.
Unpaid Bills, New Accounts and Shifts in Spending Habits
One of the earliest signs of elderly financial abuse by family members is a sudden disruption in your loved one’s finances. This could include unpaid bills, maxed-out credit cards, a sharp decrease in available funds or missed rent or mortgage payments. Perpetrators may also open new credit cards or bank accounts in the elder’s name, take out loans or make unexplained large withdrawals.
If you notice these unexpected transactions — especially when your loved one has never exhibited unusual spending patterns — it may indicate financial exploitation. Early detection is key to stopping abuse before it drains their resources.
Drastic Alterations to Estate Planning Documents
Sudden or unexpected changes to wills, trusts, powers of attorney or beneficiary designations can be a red flag, particularly when there’s no major life event — such as a marriage, divorce or birth of a new grandchild — to justify the change.
While updating estate planning documents is normal and often necessary, suspicious timing, secrecy or unusual pressure from a family member may indicate undue influence. This is a common tactic of those seeking to benefit financially from an elder, as it is often only successful when the elder trusts the individual.
Even routine updates to estate plans should be carefully reviewed — ideally with the guidance of a probate attorney — to ensure the changes reflect the elder’s true intentions.
Limited Access or Isolation
Family members attempting to control an elder’s finances may also try to limit access to the elder, restrict communication or discourage visits from other relatives. Isolation allows them to continue their misconduct undetected.
Sudden withdrawal from social interactions — especially in elders who are normally social — should raise concerns. In such cases, family members may need to be proactive in visiting and monitoring the elder to ensure they are not being manipulated or otherwise abused.
Missing Money or Property
If an elder reports missing cash, jewelry, heirlooms, artwork or vehicles, take it seriously. While memory lapses can occur, it’s crucial to rule out financial exploitation before attributing losses solely to cognitive decline.
Document the missing items and, if necessary, secure valuables in locked cabinets or other safe locations. This documentation can be critical if recovery actions or legal proceedings become necessary.
Indications of Neglect Despite Sufficient Resources
Elder financial abuse often coincides with neglect. If an elder’s basic needs — such as medical care, nutrition, hygiene, clothing or shelter — are unmet despite sufficient resources, it may indicate a family member is diverting funds for personal gain.
Even though these signs are not directly financial, they often point to resource misappropriation. Sudden declines in lifestyle or health without explanation should be investigated.
Behavioral Changes
Financial exploitation can lead to noticeable changes in an elder’s mood or behavior. They may become unusually deferential to the perpetrator, anxious, withdrawn or even fearful.
In some cases, the elder may sense something is wrong but hesitate to speak out due to guilt, shame or discomfort discussing money. Such behavioral changes can indicate coercion, manipulation or ongoing financial abuse.
Suspicious Behavior by a Relative
Not all warning signs appear in the elder — watch for behavioral red flags in family members as well. Sudden improvements in a relative’s lifestyle, increased time spent with the elder, attempts to restrict access, or pressure to make hasty financial decisions may signal abuse.
Uncharacteristic behavior, such as a previously estranged relative suddenly showing intense interest, should raise concern. Perpetrators often work hard to conceal their actions, discourage oversight and insist on privacy, making vigilance essential.
How to Stop Elderly Financial Abuse by a Family Member
Stopping elderly financial abuse by a family member must be promptly and strategically addressed to prevent further financial harm to the elder and keep open the possibility of recovering losses.
The steps below outline how to best protect your loved one and preserve their remaining assets. While every situation is unique, these measures can help you stabilize the situation before the damage becomes irreversible.
1. Ensure the Elder is Safe
Your first priority when you suspect elder financial abuse by a family member is to confirm that your loved one is physically and emotionally safe. If you believe they are in immediate danger, contact emergency services right away.
In many cases, ensuring safety means visiting the elder in person, arranging temporary care or supervision, or, in severe situations, involving authorities to prevent further harm. The goal is to stabilize the situation so you can address the financial issues without placing the elder at additional risk.
2. Preserve Any Evidence You Have Immediately
Financial abuse often leaves no visible marks — the “scars” are typically found in paperwork. This makes early documentation essential.
As soon as you notice concerning signs, gather and preserve evidence, such as bank statements, credit card bills, receipts, invoices, emails and text messages. Make photocopies or digital scans and store the originals in a secure, discreet location to ensure they cannot be altered, misplaced or destroyed.
Early preservation of evidence is one of the most powerful ways to strengthen any future investigation or legal claim.
3. Take Practical Steps to Prevent Further Financial Harm
Once you suspect elder financial exploitation, act quickly to limit the abuser’s ability to cause additional damage.
Depending on your level of access, this may include:
- Securing financial documents in a locked or hidden location
- Changing account passwords
- Freezing or cancelling compromised credit or debit cards
- Setting up transaction alerts for bank or credit accounts
These actions may not undo past harm, but they can be highly effective at stopping ongoing exploitation while you work toward a long-term solution.
4. Document Everything in a Running Log
Create a detailed, dated log of every irregularity or concerning incident — financial or otherwise.
Include:
- What happened
- When it occurred (date and time)
- Who was involved
- How the elder and their financial security were affected
Over time, patterns may emerge that can make the misconduct unmistakable. A thorough log can later serve as compelling supporting evidence for law enforcement, Adult Protective Services or the court.
5. Report the Elder Financial Abuse to the Appropriate Authorities
It’s understandable to feel hesitant about reporting a family member. However, elder financial abuse is a serious offense, and reporting it can protect not only your loved one but potentially other vulnerable adults as well.
Depending on the circumstances, you may report the abuse to local law enforcement, Adult Protective Services or the elder’s bank or financial institution. These entities can investigate, freeze accounts and intervene quickly to prevent further loss.
6. Consult a Probate Attorney About Next Steps
A probate attorney experienced in elder financial abuse can evaluate the situation, review your evidence, and outline the most effective legal strategies to stop the abuse and recover assets.
Depending on the circumstances, an attorney may help you pursue remedies such as:
- A petition to recover property
- A petition to remove a fiduciary
- Petitions to suspend or revoke powers of attorney
A probate attorney’s guidance can be invaluable in navigating complex family dynamics while ensuring the elder’s estate is protected.
7. Consider Emergency Remedies
If the elder’s assets are being depleted quickly or their safety is at risk, emergency legal measures may be necessary.
Emergency measures can include:
- Temporary conservatorship
- Emergency account freezes
- Temporary restraining orders
- Emergency protective orders
- Injunctions preventing further transfers or withdrawals
A probate attorney can help you secure these protections swiftly to halt ongoing harm while the court reviews the matter.
FAQs: Financial Exploitation of the Elderly by Family Members
Still confused how to spot elderly financial abuse by a family member. Consult the frequently asked questions below for additional guidance.
Who is most at risk for elder financial abuse?
Elders who are incapacitated, isolated or dependent on family members for daily care face the greatest risk. Perpetrators often target relatives who trust them deeply, which is why close family members are the most frequent abusers.
Can a family member go to jail for elder financial abuse?
Yes. A family member who steals from or financially manipulates an elder can face criminal charges, fines and even jail time. Criminal prosecution is handled by state prosecutors, while probate attorneys focus on civil remedies, such as recovering stolen assets, removing a fiduciary or obtaining conservatorship.
Does an elder financial abuse victim qualify for conservatorship?
Possibly. If an elder cannot protect themselves or manage their finances — and no less-restrictive alternative can keep them safe — a conservatorship may be appropriate. Courts require proof of incapacity and a showing that intervention is necessary to prevent further harm to grant a conservatorship.
What if a family member is financially exploiting an elder through a power of attorney?
If the elder still has capacity, they can revoke the power of attorney immediately. If they are incapacitated, another family member or interested party can petition the court to revoke the agent’s authority, recover misused funds and pursue damages.
How can I prevent elder financial abuse in my own family?
Regular communication, shared oversight of financial accounts and a transparent system of checks and balances are among the most effective safeguards for protecting against elder financial abuse within family system. Ensuring the elder is not isolated and encouraging active involvement from trustworthy relatives can also significantly reduce the risk.
Still have questions about financial exploitation of the elderly by family members?
If you suspect that a family member is financially exploiting an elderly loved one, acting quickly is critical. The longer the abuse continues, the harder it can be to recover stolen assets or reverse the damage. Keystone’s experienced probate attorneys can help you understand your legal options, intervene to stop the harm and work to restore what was taken. Contact us today to discuss your case.
