A recent study found that elder abuse affects millions of people in the United States every year to the tune of nearly $3 billion. The financial exploitation of senior Americans is a concern for adult children as well.

The government recently passed the Senior Safe Act in May 2018 as part of a banking reform set of laws developed by bipartisan. One of the primary aims of this new elder abuse law is to encourage financial institutions to have a more active role in fighting against elder abuse. The program was modelled on a successful statewide program in Maine, requesting that financial institutions train their employees about how to identify suspicious activity that could be an indication of elder abuse. In addition to the training program recommended by the law, the act also enables a process for employees to report suspicious activity and liability protections for those people who come forward to report it.

Unfortunately, however, there are challenges in terms of implementing this program despite the fact that many legislators and advocates believe that elder financial abuse is a serious problem.

One of the biggest issues in implementing this act is the fact that friends and family members are most often the main perpetrators of elder abuse. This can make it difficult for someone to identify elder abuse while working at the bank. Frequently, a victim doesn’t want to report a family member or press charges for fear of jeopardizing their existing relationships.

Advisors in the past have also been hesitant to come forward with reports of suspected elder abuse by friends or family members because they might not be aware of the entire situation and could put themselves in a difficult spot. If you believe that someone could be subject to elder financial abuse, appropriate estate planning protections can help to minimize the problems associated with this and could even prevent someone from draining their assets. Consult a knowledgeable lawyer today.

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