Estate Planning Alert
Stop Elder Financial Abuse

Some families have a tradition of silence when it comes to financial matters. All too often, elderly adults lose money to crooks (or even to loved ones) who manipulate or intimidate with false information. Victims may sign away property or transfer assets without even realizing what happened. This is called elder financial abuse, and in many cases it can be prevented when vulnerable adults talk with someone they trust first.

Watch Out for These Scams
Criminals will prey on anyone, but seniors are particularly at risk for scams that jeopardize their financial and estate plans.

Sweetheart scams. Single older adults, particularly men, are vulnerable to this scam. They may be showered with attention by a swindler who is after his or her money.
Insurance and investment scams. Scare tactics may be used to convince seniors to buy expensive insurance policies they don't need or investments that are too good to be true.
Wrongful transfer of ownership. Perpetrators may convince seniors to sign over the deeds to their homes or other property in exchange for money or promises to avoid foreclosure.

Sadly, the people closest to elder adults are often the ones taking advantage. Family members and caregivers are the culprits in 55% of elder financial abuse cases.* Common situations involving family include:

Desperation in a down economy. Children or caregivers struggling financially may steal possessions or dip into an older person's savings without permission.
Power of attorney abuse. When someone can no longer handle his or her finances, a family member or close advisor is selected to do so (called power of attorney).
Children who want to secure an "early" inheritance or caregivers who feel entitled to some extra cash may siphon money from the person's accounts.
Spending down assets unscrupulously. Children may encourage parents to transfer assets so they will qualify for Medicaid before entering a nursing home. However, transfers made in the five years before applying for Medicaid count against eligibility – so parents could end up ineligible for Medicaid with few assets to pay their own way.

A recent study estimates that four out of five elder abuse cases go unreported.*

Safeguard with an Estate Plan
Help prevent these crimes by starting a conversation about the dangers and encouraging seniors to speak up if they notice any red flags. Regular financial checkups with a trusted professional can help catch suspicious activity. At Wings Financial Advisors, LLC, we can help create an estate plan to protect elderly adults' assets while carrying out their wishes.

*	Source: MetLife Mature Market Institute, "Broken Trust: Elders, Family, and Finances," March 2009.

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eMoneyMatters is published by the Marketing Department at Wings Financial Credit Union for its members. It is designed to help maintain communication with members and provide reliable and helpful information that will contribute to each member's overall financial well-being. eMoneyMatters is published at Wings Financial Credit Union, 14985 Glazier Avenue, Apple Valley, MN 55124, (952) 997-8000. While consistent effort is made to ensure the integrity of information contained in this publication, material should not be considered legal, financial or professional advice. The publishers do not assume liability for loss or damage as a result of reliance on this data. Images may be from one or more of these sources: ©ThinkStock, ©iStock, ©Fotolia. Copyright ©2010 Wings Financial Credit Union. All rights reserved.