It is an unfortunate circumstance that it’s necessary to have laws that protect the elderly from being abused financially. However, all fifty states as well as the District of Columbia have enacted legislation that requires or permits individuals to report alleged indications of financial abuse or exploitation of an elder to a local or state agency that has the power to investigate and bring necessary actions against an alleged perpetrator. Usually, the person making the claim has had personal experience with the elder, such as serving in the capacity of home care, geriatric care manager, nurse, doctor, etc.
Sometimes, however, a person is reluctant to file a claim or report alleged abuse due to possible liability if their claim is unfounded. Fortunately, many of the new laws that have been enacted allow individuals to have exempt status and immunity from making allegations to encourage them to step forward and provide information when an elder is the suspected victim of abuse.
In many states banks are now required to report alleged abuse. This is very significant since often a bank teller or manager is on the “front line” when an elder withdraws a significant amount of money from his or her account or numerous smaller withdraws made in a manner inconsistent with the elder’s prior spending habits.
In addition, tax professionals are now provided with the responsibility to report suspected elder abuse when reviewing their clients’ records. While each state has its own reporting requirements, it is important for a tax professional to know the laws of the states where their clients live because many clients move to another state for either part or full-year residency.
Sometimes when an elder moves to be closer to their children, this is when financial abuse occurs. Sometimes a person becomes dependent on a caregiver or neighbor who may attempt to take advantage. An elder’s tax advisor should be reviewing assets periodically and reviewing the spending habits of the client, as well as the interest and dividends reported from year-to-year to look for changes when completing income tax returns.
By: Hyman G. Darling, Esquire
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