Elder Financial Exploitation and Guardianship Fraud — Legal Remedies

## Elder Financial Exploitation — The Fastest-Growing Form of Elder Abuse

Elder financial exploitation encompasses theft, fraud, coercion, and manipulation that deprives elderly individuals of their financial resources. The elderly population controls a disproportionate share of the nation's wealth, has accumulated assets over a lifetime, and may be cognitively impaired enough to be vulnerable to financial manipulation — creating a perfect storm for financial predators including caregivers, family members, financial advisors, and strangers.

AARP research estimates that elder financial exploitation costs Americans $36.5 billion annually — losses that are often permanent because elderly victims cannot rebuild their financial resources the way younger people can.

Common Forms of Elder Financial Exploitation

**Direct theft:** Cash and personal property stolen from the elder's home or person
**Unauthorized account access:** Using the elder's ATM card, credit cards, or bank accounts without permission
**Check forgery:** Creating or signing checks drawn on the elder's accounts
**Inappropriate power of attorney:** Obtaining a power of attorney through undue influence or fraud to control the elder's financial affairs
**Changed beneficiary designations:** Manipulating the elder into changing life insurance, retirement account, or TOD account beneficiaries to the abuser
**Will and trust fraud:** Pressuring changes to estate planning documents through undue influence
**Investment fraud:** Financial advisors or other "professionals" recommending investments that generate commissions rather than benefit the elder
**Guardianship fraud:** Obtaining legal guardianship of an elder through false allegations of incapacity to control their finances

Legal Remedies for Elder Financial Exploitation

Civil lawsuits can recover all stolen or diverted assets plus interest, and in cases of intentional wrongdoing, punitive damages. Specific legal tools include:

Money damages for all stolen funds and the investment value they would have generated
Conversion claims for personal property theft
Undue influence claims to invalidate estate planning documents obtained through coercion
Constructive trust claims to recover assets transferred to the abuser
Adult guardianship proceedings to protect the elder from future exploitation

Criminal prosecution may also be available for theft, fraud, and estate planning document fraud under state elder abuse statutes.