Elder abuse costs millions of Americans an estimated $2.9 billion annually. The expectation is that these numbers are only going to increase, as the scams targeting the elderly become more and more sophisticated. This is according to Forbes in ““After SAFE Act Passage, The Battle Against Elder Financial Abuse Remains Far From Over.”
The aim of the Senior Safe Act is to encourage financial institutions of all kinds to play a larger role in fighting against elder financial abuse. The law, which was modeled after the Senior$afe program created in Maine, requires financial institutions to train employees on detecting activities that may indicate elder abuse is occurring. The Senior Safe Act also provides a reporting process and liability protection for those who report the possible abuse. It is thought that the liability protection would make those individuals reporting the possible abuse more proactive.
Good training is key. Many bankers and financial advisors report being reluctant to report their concerns. They don’t feel confident in making a judgement about competency or financial exploitation. Advisors lack both the training and experience to identify dementia or other signs of diminished capacity. Without the ability to identify competency, it is very likely that any reporting will only take place well after the elder financial abuse has taken place.
Another issue is that the perpetrators are generally family or others close to the victim. Therefore, the senior usually does not want to press charges, fearing that the person will become angry with them and withdraw their support. Being dependent upon the same person who may have perpetrated financial abuse, puts the elderly person in a no-win situation.
While this legislation is a good first step, ideally elder abuse prevention should start years in advance, at the first signs of declining physical and mental health. It should begin with a plan for managing financial assets and having the proper legal documents in place, including a will, revocable trust, power of attorney, general durable power of attorney, healthcare directive and other estate planning documents. By being proactive while the individual is still relatively well and healthy, it may be possible to create protections that will be crucial later in life.
