Financial abuse takes many forms, ranging from the mishandling of finances to outright fraud. At its core, it involves a violation of an individual’s rights concerning their financial affairs or assets. In England, Section 42(3) of the Care Act 2014 and section 197(1) of the Social Services and Well-being (Wales) Act 2014 in Wales formally recognise financial abuse as a type of abuse which covers:-

1. having money or other property stolen
2. being defrauded
3. being put under pressure in relation to money or other property; and
4. having money or other property misused

A review for Help the Aged in 2008 found that 70% of financial abuse is perpetrated by family members and that 60% to 80% of financial abuse takes place in the home. The law acknowledges that financial abuse is often interwoven with other forms of coercion and control which is why it is so prevalent within romantic or familial relationships where there is already a degree of trust.

• Forms of Financial Abuse
• Who might be at risk of Financial Abuse?
• What can I do if I suspect someone is being financially abused?

Forms of Financial Abuse

Financial abuse manifests in many ways but commonly consists of:-

• Misappropriation or misuse of money or property – an example of this is the transfer of a parent’s main residence into their child’s name usually under the pretence of avoiding care home fees. This means that the parent forfeits their legal rights to the property leaving them open to being evicted or made to pay rent.
• Exerting undue influence to give away assets or gifts – where vulnerable individuals are pressured into making financial decisions that are not in their best interests. This could involve pressure to make large gifts, to transfer a property or make regular payments.
• Misuse of an enduring power of attorney or property and financial affairs – a lasting power of attorney is a legal document that allows you to appoint someone you trust to make decisions on your behalf if you require assistance or are no longer able to make decisions yourself. This role holds significant power which can be exploited to the attorney’s benefit and to the donor’s detriment.
• Romance abuse and predatory marriages, where the vulnerable (often elderly) person is ‘groomed’ to have a relationship with the perpetrator who either marries the victim with the intention of inheriting their estate or enters into a relationship in order to commit financial abuse. Marriage automatically revokes any will made by the victim.

Who might be at risk of Financial Abuse?

Although anyone can be the victim of financial abuse, people with care and support needs, such as those who have a long-term illness or condition, disability or impairment, are particularly at risk because there is usually a level of dependency on someone for care and support. Social isolation because of loss of mental capacity, or through the loss of friends and family members is another risk factor.

What can I do if I suspect someone is being financially abused?

Financial abuse can be very subtle – it may be that a family member is alerted to financial abuse if they find questionable transactions or payments in bank statements. In some circumstances, it may not be until after the victim passes away that the financial abuse is discovered. Action can be taken to prevent abuse during a victim’s lifetime and, after their death to recover funds.

If you have concerns about a loved one being financially abused and need advice about the steps you can or should now be taking, please get in touch with Ridley & Hall on 0800 860 62 65.

Rebecca Kershaw – Apprentice Solicitor