Elder Financial Abuse: Examples, Evidence and Recovery
Examples of elder financial abuse, the bank and power of attorney records that prove it, where to report it, and how the elder or estate can sue to recover.
You prove elder financial abuse with bank and card statements, the power of attorney or account change records, and proof of the older adult's mental capacity at the time. The statements show transfers the person did not understand or did not benefit from. With that evidence, the older adult can sue to recover the money. After a death, the estate brings the claim.
Examples and the Evidence That Proves It
Elder financial abuse is proved with records that show where the money went and the older adult's mental capacity when it moved.
Elder financial exploitation means the illegal or improper use of an older adult's money or property. Common examples are theft by a caregiver or relative, misuse of a power of attorney, forged checks, unauthorized transfers, new account owners and scams. The table pairs each example with the records to collect.
| Example | Records to Collect | What the Records Can Show |
|---|---|---|
| Theft by a caregiver or relative | Bank and card statements | Withdrawals or charges the older adult did not understand or benefit from |
| Misuse of a power of attorney | The power of attorney document and bank records | Transfers the agent made that the older adult did not understand or benefit from |
| Forged checks | Bank records | Transfers the older adult did not understand or benefit from |
| Unauthorized transfers or new account owners | Account change records from the bank or credit union | When a new owner was added to the account |
| Scams | Texts, emails and bank records | Messages and transfers tied to the scam |
Other evidence can support the bank records. Save texts and emails between the older adult and anyone who handled the money. Reports from Adult Protective Services (APS) or the police, and the names of witnesses, also belong in the file.
Start the file with these records:
- Bank, credit union and card statements covering the period when money went missing.
- Copies of checks, especially any the older adult may not have signed.
- The power of attorney document and any forms that added an account owner.
- Medical records from around the date of each large transfer.
- Texts, emails, and the names of people who saw what happened.
- Any APS or police report already filed.
Power of Attorney Misuse
Misuse of a power of attorney is a form of elder financial exploitation, and the agent who misuses it can be sued for breach of fiduciary duty. An agent acting under a power of attorney owes that fiduciary duty to the older adult. If the agent breaks that duty, the older adult or the estate can sue.
The Consumer Financial Protection Bureau (CFPB) publishes guides for agents under a power of attorney. Read the CFPB guides and compare the agent's transfers with the duties the guides describe. Then line up the dates: the day the power of attorney was signed, the day any new account owner was added, and the date of each transfer. Compare them with what the medical records say about capacity on those days. Ask the bank or credit union for the date any new owner was added.
Several people can bring the claim, subject to state law. An agent acting under a power of attorney can bring an elder abuse lawsuit on the older adult's behalf. When the agent is the person accused, the older adult can sue directly, or a court-appointed guardian or conservator can act for the older adult. After a death, the claim passes to the estate's personal representative.
How to Report Elder Financial Abuse
Report elder financial abuse to Adult Protective Services, the local police and the older adult's bank or credit union. If someone is in immediate danger, call 911. Every state has an APS program. Most states let you report to APS without giving your name.
For fraud, the U.S. Department of Justice runs the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). Internet fraud can also be reported to the Federal Bureau of Investigation's (FBI) Internet Crime Complaint Center (IC3) at ic3.gov. The Eldercare Locator, a service of the U.S. Administration for Community Living, connects callers to local agencies, including APS.
| Where to Report | What It Handles | How to Reach It |
|---|---|---|
| Adult Protective Services | Abuse, neglect and exploitation of older and dependent adults | Local office, found through the Eldercare Locator at 1-800-677-1116 |
| Local police | Reports of financial abuse | Local police department |
| Bank or credit union | Reports of financial abuse on the older adult's accounts | The older adult's own bank or credit union |
| National Elder Fraud Hotline | Fraud | 1-833-FRAUD-11 (1-833-372-8311) |
| FBI Internet Crime Complaint Center | Internet fraud | ic3.gov |
| 911 | Immediate danger | Call 911 |
The Senior Safe Act (2018) protects bank and financial-firm staff who report. Eligible employees trained under the act have immunity from liability when they report suspected exploitation of a senior to authorities in good faith. Ask the older adult's bank whether its staff are trained under the act. Step-by-step instructions for each agency are in the guide on how to report elder abuse.
Suing to Recover Money Lost to Elder Financial Abuse
The older adult, or the estate after a death, can sue the person who took the money to get it back. Claims used to recover the money include conversion, fraud, breach of fiduciary duty by an agent under a power of attorney, and undue influence. Some states add extra remedies for elder financial abuse.
California is one of those states. Its Elder Abuse and Dependent Adult Civil Protection Act, Cal. Welf. & Inst. Code § 15600 and following, defines an elder as a California resident age 65 or older. For financial abuse under § 15610.30, the court awards attorney fees when the plaintiff proves the case by a preponderance of the evidence (§ 15657.5). Fee awards for physical abuse or neglect under the same law require clear and convincing evidence plus recklessness, oppression, fraud or malice (§ 15657). The text of the act is on California Legislative Information.
Florida lets a vulnerable adult who has been exploited sue for damages, with attorney fees available, under Fla. Stat. § 415.1111. Other states set their own rules. Raise your state's remedies at the first meeting with a lawyer, and read how to file a lawsuit for the court steps.
Theft by a relative is a form of elder financial exploitation, so the same claims apply when the person who took the money is a family member. A caregiver who took money may have come through a home care agency. That agency can be directly liable for negligent hiring, supervision or retention of an aide it knew or should have known was unfit. Details are in home care agency negligence claims, and other forms of mistreatment are covered in the elder abuse guide.
Proving Elder Financial Abuse After Death
After the older adult dies, the personal representative of the estate brings the financial abuse claim. The claim is a survival action, the person's own claim that survives death. Money recovered goes to the estate. The estate's creditors can reach that money, and it passes under the will or under state inheritance rules (intestacy).
The evidence is the same set. Gather the statements, the power of attorney and account change records, and medical records about capacity from the dates of the transfers. An APS or police report filed while the older adult was alive belongs in the file too. The difference between the two death-related claims is explained in survival action vs wrongful death.
If neglect may have caused the death, the family may also have a wrongful death claim. That claim is a separate civil lawsuit, and its money goes to the family members the state statute names. Tennessee allows 1 year, California and Texas allow 2 years, and Massachusetts and Minnesota allow 3 years, usually counted from the date of death. Current deadlines are in the wrongful death statute of limitations guide. Filing deadlines for the financial abuse claim itself vary by state. Confirm the deadline for your state with a lawyer.
Getting a Financial Elder Abuse Attorney
For a lawsuit to recover the money, look for an elder abuse lawyer, who is a litigator who sues for damages. An elder law attorney usually handles planning matters such as wills, trusts, Medicaid eligibility, powers of attorney and guardianship. Some firms do both.
Lawyers who handle elder abuse cases usually work on a contingency fee. The lawyer takes a percentage of the recovery and charges no fee if there is no recovery. The percentage is set in a written fee agreement and can be negotiated. Case costs such as filing fees, medical records and depositions are separate from the fee. The agreement should say whether costs come out before or after the fee is calculated, and whether you owe costs if the case is lost. More detail is in the guide to contingency fee agreements.
In California, the court awards attorney fees in a proven financial abuse case. Florida makes attorney fees available under its exploitation statute. Ask the lawyer how a fee award would affect the contingency percentage.
Questions to ask before hiring:
- How many financial abuse cases like this one have you handled?
- Who will work on the case day to day?
- What is the fee percentage, and how are costs handled?
- Will you file suit if the case does not settle?
- How will you keep me updated?
The guide to choosing an elder abuse lawyer covers what to look for in more depth.
You can describe what happened and get matched with a lawyer who handles elder financial abuse cases, free and with no obligation to hire.
Frequently Asked Questions
What are examples of financial elder abuse?
Examples include theft by a caregiver or relative and misuse of a power of attorney. Forged checks, unauthorized transfers, new account owners and scams also count. Each is a form of elder financial exploitation, meaning the illegal or improper use of an older adult's money or property.
What evidence do you need for financial abuse?
You need bank and card statements showing transfers the older adult did not understand or benefit from. You also need the power of attorney or account change records. Add proof of the person's mental capacity at the time. Texts, emails, APS or police reports and the names of witnesses can support those records.
How to prove elder financial abuse after death?
The estate's personal representative brings the claim and gathers the same records: bank statements, the power of attorney and account changes, and proof of the person's mental capacity at the time. Money recovered goes to the estate.
Can you sue a family member for elder financial abuse?
Yes. Theft by a relative is a form of elder financial exploitation, and the older adult or the estate can sue to recover the money. Claims can include conversion, fraud, breach of fiduciary duty by an agent under a power of attorney, and undue influence.
Who do I report elder financial abuse to?
Report it to Adult Protective Services, the local police and the older adult's bank or credit union. For fraud, call the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), and report internet fraud at ic3.gov. Call 911 if someone is in immediate danger.
Not sure where you stand?
Check your eligibility in under 2 minutes — free, private, and no commitment required.