Financial abuse of an elderly relative is a deeply distressing situation. It can be hard to identify, and even harder to address when the person who may be a victim is reluctant to believe that someone they trust has acted against their interests. Understanding what financial abuse looks like and what legal steps can be taken is the starting point for protecting someone you are concerned about.
Financial abuse can take many forms. In some cases it involves outright theft, such as withdrawing money from a bank account without authority or using a debit or credit card without permission. In other cases it is more subtle, involving the use of undue influence to persuade an elderly person to change their will, make a large gift, or transfer property to another person.
Other examples include persuading an elderly person to sign a lasting power of attorney and then using that power for the attorney's own benefit rather than the donor's. Financial abuse can also involve overcharging for care services, pressuring an elderly person into giving gifts or loans, or taking control of their finances and leaving them without access to their own money.
If you believe a relative is being financially abused, the first step is to gather whatever information you can about what has happened. Bank statements, financial records, and correspondence can all be relevant. If the person has mental capacity, speaking with them about your concerns, sensitively and without pressure, is important. Where the person lacks capacity, a broader range of protective steps may be available.
Reporting concerns to the relevant authorities, including Adult Social Services and, where criminal conduct may be involved, the police, is an important step. Adult safeguarding teams have powers to investigate and intervene in cases of suspected financial abuse.
Our family law barristers can advise on the legal steps available to protect an elderly relative from financial abuse.
Where an elderly person lacks mental capacity and decisions need to be made about their financial affairs and property, the Court of Protection has jurisdiction. The court can appoint a deputy to manage the person's finances where no lasting power of attorney is in place, or where an existing attorney is not acting in the person's best interests.
Where there are concerns that an existing lasting power of attorney is being abused, an application can be made to the court to revoke the power of attorney and, where appropriate, to investigate the conduct of the attorney. The Office of the Public Guardian also has investigative powers in relation to attorneys and deputies.
Where property or money has already been transferred as a result of undue influence, fraud, or a lack of mental capacity in the person making the transfer, it may be possible to recover it through legal proceedings. Claims based on undue influence, lack of capacity, or unjust enrichment can be brought in the courts.
Acting promptly is important in these situations. Where assets have been spent or transferred on, recovery becomes harder over time. Getting legal advice at the earliest possible stage maximises the options available.
Where there are concerns not just about what has already happened but also about future financial decisions, an injunction or other protective order may be needed to prevent further transfers or dealings with the elderly person's assets. A barrister can advise on what interim protection is available and how to obtain it.
Our barristers are available to discuss your options at an early stage. Get in touch to find out more.