Show #267 Airing Sunday, 8/15/04
Sadly, financial abuse of older folks goes on way too often. Maybe it’s a caregiver that comes into your mom’s home and steals things. Perhaps a child or friend gains your dad’s trust, then convinces him to give her thousands of dollars. If you’re concerned about financial abuse of a loved one, you can take protective steps. Here to advise us is someone who never abuses our trust, my law partner, Mike Solomon.
Question: What can we do to protect against financial abuse?
Answer:For homecare helpers, my first tip is to get references before letting anyone into your home. And check them.
And do a criminal background check. That’s pretty easy. Go to an online search engine, type in criminal background check, and up will pop a number of websites. Fees are generally under $100.
Question: Should caregivers be bonded?
Answer: Yes. A bond is insurance. If a person steals from you and disappears, then at least an insurance company will be there to cover your losses.
Questino: Any problem with putting a child on a bank account?
Answer: That depends on the child. This is dangerous. A joint owner on your account could take all the money --legally! I’ve seen people put others on their accounts, like caregivers, attorneys, financial advisors, friends. That’s especially risky. Even if you don’t put a person on your account with you, don’t leave checks or credit cards around where a caregiver or guest could find them. These may create a tempting target for someone to steal the checks or card, then forge your name to steal your money.
Question: What can you do if you need another person's help paying your bills and handling your finances?
Answer: You can put them on your account to give them access, but we’ve already pointed out that’s dangerous.
You could give them a power of attorney, but that’s also dangerous.
Whatever you do, create a check and balance. For example, if you put one child on your bank account, tell the bank to send copies of the bank statements to a different person who can watch for suspicious activity in the account.
Question: What's a conservatorship?
Answer:This might be the most protective technique you can use. You pick a conservator, maybe a family member or friend, who is appointed by the Probate Court. This person then can handle your finances, but only with the Probate Court’s approval.
The judge is watching, which provides good protection. While this may offer the most protection, it also involves more hassles, costs and paperwork.
Mike’s tips are not a guarantee against senior scams and financial abuse. There is no fool-proof technique. But the suggestions provided today can go a long way toward protecting your finances, or the financial security of someone you love.
