Dealing With Exploitation of the Elderly

Source: Florida CPA Today

Rick LeNoble, former chair of the FICPA Elder Care Committee (now CPE Elder Planning & Support Services) writes that CPAs have an opportunity, and perhaps a moral duty, to prevent exploitation of the elderly. Teams should be created to avoid guardianship for the elderly. A team might consist of a CPA, attorney, financial advisor, and geriatric care manager.

Exploitation can occur when the elderly person has physically or mentally deteriorated. It can take many forms such as obtaining improper access to assets through joint ownership, use of credit cards, misuse of durable power of attorney, etc.

Red flags indicating exploitation include unusual bank account activity, transfer of property, etc.

CPAs can review bank statements, check books, cancelled checks, etc. and determine whether the elderly client simply needs a financial advisor or has been illegally exploited. In the latter case an attorney should be consulted to help determine next steps.

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From Florida CPA Today, Florida Institute of Certified Public Accountants, www.ficpa.org/ficpa/ResourceCenter/Publications/FCT, November/December 2008, p. 6.