The elderly, those 65 years and older are more often subjected to financial abuse, exploitation and scams. Older adults are often targeted because they are perceived to have assets that may be easily reached. The fraudsters may include trusted family members, neighbors, caretakers, or friends. Or they may appear from what seems to be legitimate financial companies. A caretaker or stranger may be able to gain a measure of trust and become involved in the person’s financial accounts and assets.
The exploitation may materialize in several ways, for example:
- They request a loan
- They request to borrow credit card or ATM card
- They request the older adult co-sign or guaranty a loan or lease
- They suggest closing CD’s and changing banks and accounts to additional signors
- They engage in financial transactions for the older adult without proper documentation
Also:
- A financial company pressures or coerces the person to refinance debt or enter into a HELOC or a reverse mortgage, with low interest rate promises and access to equity
- Investment scams, with promises of low risk and guaranteed returns
It is important to recognize the signs of financial exploitation. What is the capacity of the older adult. Is there an apparent disability? What is the nature of their assets? Is there significant equity in their residence? What sort of debts did they incur? Does there seem to be an unusual amount of recently incurred unsecured credit card debt?
If the older individual has been exploited there several areas of concern. First, seek to immediately terminate the conduct that led to the financial abuse. Second, determine how to proceed, if possible, to recover wrongfully transferred assets. Third, analyze the nature and the amount of debt that may have been improperly incurred and determine best method to handle to discharge such debt.
- Terminate conduct
If the older adult has improvidently granted a power of attorney, the POA should be revoked. If unable to revoke, it may be necessary to obtain a court appointed guardian over the person. The guardian also will be empowered to investigate the financial affairs of the person. Investigate all assets, including bank accounts, investment accounts, safe deposit boxes, search real property titles, and check status of vehicles titles. If possible, trace any transfers back for 24 months. Speak with other relatives and friends to gather information. Check mail and determine if an address has been changed.
2. Asset Recovery
The older person or their guardian could seek to recover assets. This could be accomplished voluntarily or by filing a legal action seeking collection. An example of that is The Delaware Court of Chancery handled the case of Estate of George M. Reed, Jr., et al. v. Lisa Grandelli (C.A. No. 8283-VCG), which involved a 41-year-old waitress from Hall’s Family Restaurant and her 86-year-old elderly patron. The court ordered the return of loans, real estate interests, and funds the man transferred during his lifetime, though it allowed her to keep a portion of the lavish gifts he gave. The court specifically noted the evidence of the misguided and inappropriate transfers as follows:
- The Relationship: In the spring of 2011, Lisa Grandelli was working as a waitress at Hall’s Family Restaurant in Wyoming, Delaware, when she met George M. Reed Jr., an 86-year-old man who had recently lost his wife.
- The Transfers: Over a 20-month period, George Jr. lavished Grandelli with significant gifts, including cash transfers, a new Ford truck, vacations, and paid off her personal loans. He also added her as a co-owner of his condo and paid for her to take trips with her boyfriend.
In the event the wrong doer should file a bankruptcy proceeding, immediate steps should be taken to have the debt declared non-dischargeable. For example, in the case of Ogle v. Sigler 2023 WL 4610749 (Bankr. W.D. Tex. July 17, 2023), a guardian and conservator had been appointed over Neva Ogle (“Ogle”) Ogle obtained a state court judgment against James and Carla Sigler (“Siglers”) based upon, inter alia, elder fraud in the amount of $1,473,238. The Siglers filed for Chapter 13 bankruptcy listed the debt. Ogles filed an adversary seeking. the claim be declared non-dischargeable The Bankruptcy Court granted Ogles motion for summary judgment finding the debt to be non-dischargeable under Bankruptcy Code Section 523(a)(2)(A).
3. Bankruptcy Cases and the Elderly Debtor
If the financial abuse included, for example, maxing out credit cards by the wrongdoer, and unable to resolve voluntarily with the creditors, a bankruptcy option may be reviewed, If the older adult lacks the capacity to participate in a bankruptcy, depending upon your jurisdiction, a guardian may be needed. Otherwise, it may be sufficient to commence a case if there exists a durable power of attorney granting the power to file bankruptcy. The analysis must include a careful review of the person’s assets and liabilities as well as monthly and annual income. Chapter 13 bankruptcy for these individuals is somewhat problematical although possible. The main issue would feasibility of maintaining a 3–5-year plan. And most importantly, establishing good faith in proceeding will be vital.
Conclusion
In recent years, the elderly have been increasingly become targets of financial abuse , exploitation, and scams. Family members and caregivers should be aware of the warning signs that may indicate an older adult is being victimized, including unusual financial transactions, sudden changes in spending patterns, unexplained withdrawals, or the involvement of unfamiliar individuals in financial matters. Financial exploitation can have devastating consequences, robbing older adults of security and independence in their golden years. Awareness and early intervention are critical.
(Printed with permission, NACTT Academy, Considerchapter13.org, June 29, 2026)