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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

Lifetime Financial Abuse

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.

Financial Abuse discovered Post 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)

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 Financial Abuse

Of course, taking steps to limit or prevent financial abuse happening in the first place is the easiest and best course of action. It may be as simple as drafting a Will or putting other measures in place to safeguard your assets.

If you suspect that you may be the victim of financial abuse in the future, or want to take steps to ensure that future decisions about your finances can be made when you may not necessarily have capacity, you should consider making a Lasting Power of Attorney. We can discuss all the options with you.

Case Studies

Don’t give it away for a song; Undue Influence in lifetime transfers

The recently reported case of Moursi v Doherty  demonstrates the vulnerability of an elderly person living alone to financial abuse […]

When can a property transfer be set aside?

The transfer of all or part of an interest in a property is a hugely important issue as for many […]

Predatory Marriage; new law in Canada offers hope

A proposed change in the law in Canada may be a sign of hope to a campaign in England & […]

When is a Gift not a Gift? Undue Influence and Lifetime Giving

Your mother dies, and you find out that your brother has been ‘given’ tens of thousands of pounds by her […]

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.

Contact us

Sarah Young and James Urquhart-Burton are experts in dealing with these situations and can offer you advice tailored to your needs. Call us on our freephone 0800 8 60 62 65 or fill in our online contact form to arrange an initial consultation.