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Financial Abuse

We specialise in resolving the issues that arise from the financial abuse of older people. The elderly are more vulnerable than others to subtle forms of pressure from those who are closest to them. As a result they can be taken advantage of and suffer financial loss. Of course, financial and other forms of abuse can happen at any age, but it can be particularly challenging to know what to do when the victim may not even be aware that they are a victim, or if the abuse is discovered after their death.

Financial abuse includes:

  • Theft.
  • Misappropriation of money or property.
  • Misuse of assets.
  • Exerting undue influence to give away assets or gifts or to make a will.
  • Putting undue pressure on an older person to accept lower cost/lower quality services in order to preserve more financial resources to be passed to beneficiaries on death.

It is estimated that between 1% and 2% of people aged 65 or over in the United Kingdom today have suffered, or are currently suffering, financial abuse since turning 65.

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, with only 15% to 20% in residential care.

Remedies in Financial Abuse

Powers of the Court of Protection in Relation to Financial Abuse

If the victim lacks mental capacity, then the Court of Protection has wide powers to deal with financial abuse. The Court can make an order in respect of a decision which the victim of abuse could make themselves, but for their mental incapacity.

This could include;

(a) an order prohibiting a specified person from having contact with the victim;
(b) an order enabling another person to bring court proceedings on behalf of the victim to recover the money and;
(c) an order appointing a deputy.

The High Court can also make freezing orders in relation to the victim’s accounts and property to prevent further

County Court Claims: Lifetime

Proceedings can either be brought by the victim (if they have mental capacity) or by someone on their behalf if they do not (known as a Litigation Friend). If the victim lacks capacity, an order must be made by the Court of Protection enabling someone to issue court proceedings for recovery on behalf of the abused person.

Applications can be made to the court for recovery of funds and/or the setting aside of transfers of an asset which have been conducted under undue influence, duress or fraud.

There are two types of undue influence; actual and presumed undue influence.

County Court Claims: After Death

Unfortunately, a relative may only uncover transactions which raise suspicions after the death of a relative, during the administration of the estate.

There is a distinction between undue influence in relation to testamentary gifts (who receives what under the deceased’s Will) and undue influence in relation to lifetime gifts (gifts the deceased made before their death)

When considering lifetime gifts made by the deceased before their death, again the key issues are actual undue influence and presumed undue influence.

The difficulty in these cases can be obtaining evidence. It will almost always be necessary to obtain bank statements, GP and hospital records and witness statements from friends and family members.

Red Flags

There are many red flags of potential abuse.

  • Being pressured to lend money to a relative or friends.
  • Being charged excessive amounts of money for services.
  • People frequently requesting small amounts of money.
  • Family members moving into your home without your consent and without prior agreement on sharing costs.
  • Pressuring you to sign over your house or property.
  • Taking money, cashing a cheque or using credit or debit cards without your permission.
  • Pressuring you to change a will or sudden or unexpected changes in a will or other financial documents.
  • Someone else taking charge of your benefits and not giving you all of your money.
  • A change in living conditions or a lack of heating, clothing or food.
  • Inability to pay bills/unexplained shortage of money.
  • Unexplained withdrawals from an account.
  • Unexplained loss/misplacement of financial documents.
  • The recent addition of authorised signatories on a client or donor’s signature card.
  • Failure to pay care home fees.
  • Control of access to the victim or their home.

Preventing Further Abuse By Attorneys

What if you already have a Power of Attorney in place and you suspect that your Attorney may be taking advantage of their powers? In these circumstances you should consider a Deed of Revocation which removes the powers of the Attorney to manage your finances on your behalf. You should consider making a new Power of Attorney appointing a different attorney.

Sarah Young, Head of the Contentious Probate team at Ridley & Hall is an expert in dealing with these situations and can offer you advice tailored to your needs. Call us on 0843 289 4640 or fill in our online contact form to arrange an initial consultation.

Case Studies

Attorney Steals £30,000 from 95 year old Living with Dementia

In a recent judgment, a court has found that a 95 year old woman from Oldham with dementia was the […]

My first meeting with Sarah  Young was really great. She seemed to care about my situation and gave good advice on what we should expect throughout our case. My case has now come to an end thanks to Sarah. I would highly recommend her services to others in similar situations.