Financial exploitation of older adults is a growing concern—and it’s happening in ways that are increasingly subtle, sophisticated, and hard to detect. As an advisor, you are often on the front line. Whether you are a financial planner, CPA, fiduciary, or attorney, your position puts you in a unique role to spot the warning signs before real harm occurs. Partnering with an elder law attorney can make all the difference in protecting your clients’ hard-earned wealth and their peace of mind.
The Growing Threat of Financial Exploitation
Financial exploitation of seniors has been called the “crime of the 21st century,” and for good reason. According to the National Council on Aging, older Americans lose billions of dollars each year to scams, fraud, and undue influence—often by people they trust.
Common forms of exploitation include:
- Unauthorized withdrawals or account changes by caregivers or family members
- Pressure to modify estate plans or add new beneficiaries
- Investment scams and phishing schemes targeting retirees
- Abuse of powers of attorney or trustee authority
- “Sweetheart” scams, where someone feigns a relationship to gain access to funds
The emotional and financial toll of exploitation can be devastating. Once assets are lost, recovery is difficult—and sometimes impossible.
The Advisor’s Role: First Line of Defense
Advisors are often the first to see changes in behavior or financial patterns. You might notice:
- Unexplained withdrawals or account changes
- Sudden interest in risky or unusual investments
- A new “friend” or family member taking control of meetings
- Confusion or forgetfulness around transactions
- Hesitation to discuss financial matters without someone else present
Being proactive doesn’t mean overstepping boundaries—it means paying attention and knowing when to call in reinforcements.
When to Partner with an Elder Law Attorney
An elder law attorney can help advisors and their clients by:
- Drafting protective documents: Powers of attorney, trusts, and other tools can be structured to prevent abuse while maintaining flexibility.
- Reviewing and updating estate plans: Ensuring the plan matches the client’s current wishes and closes potential loopholes.
- Addressing suspected exploitation: Offering legal strategies to freeze accounts, remove bad actors, or report abuse.
- Navigating Medi-Cal and long-term care planning: Protecting assets while ensuring proper care, which reduces the vulnerability that often leads to exploitation.
Proactively connecting your clients to elder law counsel creates a safety net, showing you care about more than just their investments—it’s about their lifelong financial well-being.
Simple Steps Advisors Can Take Today
- Educate clients about common scams and red flags.
- Maintain a trusted contact form with a third-party individual authorized for alerts if suspicious activity arises.
- Encourage regular estate plan reviews, ideally every 3–5 years or after major life changes.
- Collaborate with elder law professionals to add a layer of legal protection.
- Document and communicate concerns early—acting sooner can prevent irreversible losses.
The Bottom Line
Protecting clients from financial exploitation is both a moral obligation and a smart business practice. By staying alert and forming strong partnerships with elder law attorneys, advisors can help ensure their clients’ wealth remains a blessing—not a target.
If you want to discuss how to protect your clients from financial exploitation or collaborate on proactive planning, our elder law team is here to help.
