Financial elder-abuse rampant

MAY 13, 2012
The tabloid newspapers and bloggers like nothing more than a messy fight involving a wealthy family. The 2009 trial of Anthony Marshall, the son of Brooke Astor, heiress to much of the Astor fortune, was daily fodder for New York papers. Mr. Marshall was accused of forging his centenarian mother's signature on a document that allowed him, as her guardian, to invest her money as he wanted. Mrs. Astor, who suffered from Alzheimer's disease, was forced to live in squalor without adequate clothing or care, according to testimony at Mr. Marshall's trial. He was convicted of grand larceny and other charges. The highly publicized fight is an example of a nationwide epidemic of elder abuse, said Cameron DeGuerre, an attorney at Peck Bloom LLC. Ms. DeGuerre, who focuses on trust and probate litigation, gave advisers at the NAPFA conference an overview of the problem. Every year, between 500,000 and 5 million elders are abused, neglected or exploited. The estimated range of such crimes is wide because the abuse is hard to define, and in many cases, it goes unreported, Ms. DeGuerre said. “In many cases, [elders] may depend on the abuser and fear reprisals from them. They may be afraid of being placed in a nursing home or dread the stigma of domestic violence,” Ms. DeGuerre said. Indeed, in 78% of elder-abuse cases, the abuser is a spouse, a child or other relative of the individual, according to 2010 statistics from the Illinois Department on Aging. Mickey Rooney, for example, said that he had food and water withheld from him by his stepson, who allegedly stole more than $400,000 from the actor. The actor has been granted a restraining order against the stepson.

FAMILY MEMBERS

Financial exploitation is the most-often-reported type of abuse (58%) and is often linked to emotional abuse. In many cases, the abuse is committed by a family member attempting to get control of an older person's funds. “If a family member takes offense at not being appointed guardian or being given power of attorney, beware,” Ms. DeGuerre said. For financial advisers who suspect that a client is losing their capacity to make decisions, they should communicate their concerns to family members and/or friends of the individual, as well as legal representatives, Ms. DeGuerre said. If they suspect that abuse is occurring, the situation can be doubly frustrating, as action on their part could result in their dismissal by a family member or guardian. [email protected]

Latest News

Merrill veteran Jonathan Stogsdill joins Trinity Wealth Advisors in St. Louis
Merrill veteran Jonathan Stogsdill joins Trinity Wealth Advisors in St. Louis

A 20-year financial services veteran brings values-driven planning expertise to the St. Louis-based RIA.

SEC enforcement against public companies hits record low under Atkins
SEC enforcement against public companies hits record low under Atkins

New research shows a 71% plunge in actions in fiscal year 2026, with total settlements the lowest since the database began.

Edward Jones advisor launches SteadRock Private Wealth on LPL platform
Edward Jones advisor launches SteadRock Private Wealth on LPL platform

An Ohio-based advisor departs Edward Jones to build an independent firm focused on retirees and business owners.

SEC and state regulators tighten grip on fraud in fiscal 2026
SEC and state regulators tighten grip on fraud in fiscal 2026

Broker-dealer enforcement actions surged 66% as the SEC and state regulators cracked down on Ponzi schemes and digital asset fraud.

Marsh acquires Wilshire to deepen wealth advisor reach
Marsh acquires Wilshire to deepen wealth advisor reach

The deal adds $221 billion in AUM and bolsters Marsh's alternatives and model portfolio capabilities for advisors.

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.