It is not uncommon for an elderly or disabled person to entrust his/her finances to a third party. For example, an elder may execute a power of attorney as a simple estate planning tool in order to ensure that his or her affairs are properly handled if the elder is unable to act due to illness, injury, incapacity, or other cause. In other cases, an elder who is becoming overwhelmed by day-to-day financial tasks may simply “hand over the checkbook” to a relative or a trusted friend.
But what happens when the person to whom the elder’s affairs are entrusted misuses that authority? As the elder population in the United States continues to increase dramatically, the financial exploitation of the elderly has become an increasingly serious problem.
The exploitation may arise in various contexts. The elder’s assets may be misappropriated by a family member or agent under a power of attorney, or by the guardian or conservator appointed to handle the elder’s affairs.
Liability may be clouded by issues of family relationships and trust between the victim and the abuser, ambiguities in powers of attorney or other instrument controlling the fiduciary’s authority, and varying levels of competency of the victim.
Adding to the dilemma of financial exploitation is the issue of MaineCare/Medicaid eligibility, and the impact of the exploitation on the victim’s eligibility for necessary public benefits. In particular, when a third party makes improper transfers of the elder’s property without the elder’s knowledge or consent, will those improper transfers negatively affect the elder’s eligibility for MaineCare/Medicaid? If you have questions or concerns about possible elder abuse feel free to contact us to get answers to your questions.