Financial Abuse of Older Adults
What is financial abuse?
Financial abuse is the most common type of abuse that people may experience in later life. This type of abuse accounts for over a half of elder abuse situations reported. Financial abuse means using a person's money or property without permission or in a fraudulent manner. Financial abuse can take away or limit an older person's resources, choices, and options.
Financial abuse typically involves a family member or another person whom the older adult trusts. Financial abuse can occur when a family member or friend takes over financial decisions and control of the older adult’s money. Financial neglect occurs if a family member, friend or power of attorney controls the money and misuses the money or the power of attorney.
Financial abuse and neglect negatively impact the trust among family members. Adult children may not consider or realize that their actions are financially abusive or neglectful toward their parent(s).
Common examples of financial abuse include:
- A family member who repeatedly pressures a parent for money or borrows money, but never repays it.
- A family member who sells a parent's house or other property and then uses the money for their own benefit.
- Adult children who use a parent's pension and then make the parent ask them for money.
- A person who misuses a power of attorney.
Financial abuse may involve any amount of money or any size of property. Some forms of financial abuse involve theft or fraud, and these are considered crimes.
Who can experience financial abuse?
Both older men and older women can experience financial abuse. Women tend to experience financial abuse more often than men. Some women may not have experience with finances or managing money, especially if they have not worked outside the home. Older women also may have fewer resources, and they tend to live longer than men.
Why does financial abuse occur?
Financial abuse occurs when a person's sense of need, entitlement, or greed for the money is greater than their ability to remain fair, honest and caring with a parent or other older adult.
In some cultures, there are expectations and assumptions about who will inherit parents’ money or property.
Older parents and their grown children may use banking machines or joint accounts together, but they may not recognize the risk in doing so.
Financial abuse is more likely to occur during an older adult’s health crisis or after a major change in health. Some older adults become vulnerable to financial abuse when their spouse, partner or close friend dies. They are grieving, and they have many decisions to make.
What are the health effects of financial abuse on older adults?
Financial abuse hurts older adults in many ways. Financial abuse seldom stops by itself. Many financial abuse situations involve lies, threats or intimidation, which are forms of emotional abuse. These situations can lead to ongoing stress and financial strain for an older adult.
An older adult may feel very hurt by the person and abusive behaviour, but they may not ask for the money or talk about the situation. The situation can become worse over time and sometimes lead to physical abuse.
Financial abuse can take away or limit parents’ or older adults’ finances or money and their ability to take care of themselves. It can negatively impact their health by reducing the resources available for proper housing, good nutrition, medication, and healthy activities.
How can abuse and neglect be prevented?
You can consider options such as having the bank automatically pay your bills if you depend on someone to do the banking, especially if your health changes or you need to go to the hospital or into a care facility.
If you lend money, write down the amount, the person’s name and the date you loaned it. This can help you remember the amount of money given as a loan or gift. It is important for both parents and children to understand that this is the parent's money.
For any major decision involving property, consider using a notary, lawyer, or community advocate.
What should I do if I see a crime or harmful situation?
If you see a crime or harmful situation occurring to an older adult, call the police or 9-1-1 right away.
For More Information
For information and services, you can contact:
- Your local designated agency/health authority at http://bcceas.ca/getting-help/elder-abuse-and-neglect/responding-to-elder-abuse-and-neglect/. Advise that you want to report a situation of suspected elder abuse, neglect or self-neglect.
- Seniors Abuse and Information Line (SAIL), hosted by B.C. Centre for Elder Advocacy and Support, at 604-437-1940 in Vancouver or toll-free at 1-866-437-1940, or visit bcceas.ca.
- Ministry of Health website for information on preventing, recognizing and responding to elder abuse, www2.gov.bc.ca/gov/topic.page?id=31E45F6D04A74FBF96C37540B2B4E483.
- Public Guardian and Trustee at 604-660-4444 or visit www.trustee.bc.ca.
- Legal Services Society at 604-408-2172 or toll-free at 1-866-577-2525 or visit www.lss.bc.ca.
- VictimLink BC toll-free in B.C. at 1-800-563-0808 or visit www2.gov.bc.ca/gov/content/justice/criminal-justice/victims-of-crime/victimlinkbc for information for victims of family and sexual violence or crime.
For more information about abuse and older adults, see the following:
- HealthLinkBC File #93a Preventing Abuse and Neglect in Older Adults
- HealthLinkBC File #93b Abuse and Neglect of Older Adults: Information for Family Caregivers
- HealthLinkBC File #93c Abuse and Neglect of Older Adults: Understanding Gender Differences