When you see an article in the paper about a senior being taken advantage of, it often involves a power of attorney. A power of attorney is a great legal tool that lets someone else help you pay your bills or manage finances and property. But, watch out! If you name the wrong person, you have given them power that could be used for good or evil.
Sadly, elder fraud is on the rise. Sometimes it’s done by those you know, using authority you gave them, as a power of attorney or a trustee. But it can also be a stranger taking advantage. There are generally two categories of Elder Fraud:
- Fraud by a stranger
- Fraud from someone known (like a caregiver or a family member)
What is the solution?
Good planning and help by professionals you trust, such as your attorney, accountant and financial advisor can definitely reduce the risk of fraud. Often the worst cases of fraud are where someone refuses to trust anyone, and then when it’s too late for anyone to help legitimately, a conman (or woman) moves in because the person is so desperate for help.
In our next post we’ll take a look at the different types of fraud that strangers and family members can carry out, so you’ll know what to look for.
Be sure to share this with friends, family and neighbors who may need this information.