When a parent begins to rely on others for care, whether it’s a professional caregiver, a neighbor, or even a new friend, they often welcome companionship and assistance. Unfortunately, these relationships can sometimes cross into dangerous territory, such as financial exploitation.

Attorneys throughout the US encounter cases where subtle coercion, undue influence, or outright fraud depletes a parent’s savings, deprives rightful heirs, and causes years of family conflict. Understanding the warning signs and knowing your legal options can help protect your loved one and preserve their legacy. LSS Law can assess the situation and initiate legal action, if necessary.

What Financial Exploitation Looks Like

Financial exploitation occurs when someone takes advantage of an elderly or vulnerable adult’s trust to gain control of their money or property by improper means. This often involves:

• Unexplained withdrawals or large purchases that don’t match past spending habits.
• Sudden “gifts” or loans to a caregiver or new acquaintance.
• Changes to wills, trusts, or powers of attorney in favor of someone who has only recently entered the picture.
• Isolation from family: when a caregiver or new “friend” begins limiting contact to keep others from noticing.

Elder Law Concerns: Vulnerability to Undue Influence

Older adults can be especially vulnerable to undue influence when:

• They rely on someone for daily needs.
• They struggle with diminished capacity or health issues.
• They are emotionally dependent on a caregiver or companion.

Elder law attorneys work to safeguard seniors by establishing strong powers of attorney, healthcare directives, and trust structures. But if coercion has already occurred, these protections can be undermined. That’s when litigation may become necessary.

Litigation: When Families Suspect Exploitation

When a child or relative suspects that Mom or Dad is being coerced, the situation may require immediate legal action. In New Jersey, common litigation paths include:

• Guardianship Proceedings: If an elder lacks capacity and is at risk, courts can appoint a guardian to take control of finances and decision-making.
• Will or Trust Contests: If estate documents were changed under suspicious circumstances, family members can challenge them in probate court.
• Breach of Fiduciary Duty Claims: If a caregiver, agent under power of attorney, or trustee abused their authority, they may be held legally accountable.
• Civil Fraud or Conversion Claims: Families can pursue recovery of misappropriated funds or property.

These cases are often emotionally charged, with family relationships, money, and caregiving dynamics all colliding. Having an experienced elder law and litigation team can make a decisive difference.

What Families Can Do Now

If you suspect your loved one is being financially exploited, consider these steps:

1. Document everything: keep records of suspicious transactions, statements, and interactions.
2. Communicate openly: check in regularly with your parents and, if possible, maintain visibility into their finances.
3. Seeking legal advice quickly: delays can make it harder to recover funds or unwind coerced decisions.

Protecting Both Dignity and Legacy

At its core, financial exploitation is not just about money; it’s about dignity. Seniors deserve relationships rooted in care, not control. By staying alert and acting quickly, families can protect both their loved ones’ well-being and their rightful legacy. You can read even more about safeguards here.

If you believe a parent or elder relative in New Jersey may have been coerced by a caregiver or new “friend,” our firm is here to help. We combine elder law experience with litigation strength to protect seniors and can help hold wrongdoers accountable. LSS Law can help. Contact us here.

FAQs

1. What is financial exploitation of an elder?
It’s when someone improperly uses an elderly person’s money, property, or assets for their own benefit, often through coercion, manipulation, or abuse of trust.

2. Who is most at risk of financial exploitation?
Seniors who rely on caregivers, live alone, have diminished capacity, or are isolated from family are most vulnerable.

3. What are common warning signs of exploitation?
Unexplained withdrawals, sudden “gifts,” changes to wills or powers of attorney, new joint accounts, or caregivers limiting family contact.

4. What is “undue influence”?
Undue influence occurs when someone pressures or manipulates a senior into making decisions they wouldn’t otherwise make, often regarding estate planning or financial matters.

5. Can family members challenge a suspicious will or trust?
Yes. In New Jersey, wills or trusts can be contested if there’s evidence of undue influence, fraud, or lack of capacity.

6. What legal options are available if a caregiver exploits an elder?
Families may pursue guardianship, will/trust contests, breach of fiduciary duty claims, or civil fraud actions to recover assets and protect the elder.

7. How does guardianship help in cases of exploitation?
If a court determines that an elder lacks capacity, it can appoint a guardian to oversee their finances and protect them against further exploitation.

8. What should I do if I suspect exploitation?
Document unusual activity, maintain communication with your parents, and seek legal advice as soon as possible. Quick action improves the chances of recovery.

9. Can financial institutions help stop exploitation?
Yes. Banks in New Jersey can sometimes freeze suspicious accounts or report potential abuse under elder protection laws.

10. How can an elder law attorney help?
An attorney can assess the situation, initiate legal action to prevent exploitation, contest coerced estate planning changes, and hold wrongdoers accountable.