Protecting Yourself from Fraud and Exploitation in Later Life

As an elder law attorney in Jefferson City, Missouri, I have seen the heartbreaking aftermath of financial and emotional abuse that far too often comes from the people seniors trust most: family members, close friends, and caregivers. While it may be difficult to imagine your own child, niece, or long-time neighbor doing harm, elder exploitation is an all-too-common reality in Missouri and across the country.

In this article, I will seek to explain how these situations arise, give real-world examples, cite applicable Missouri and federal laws, and offer practical steps you can take to protect yourself or a loved one.

Common Forms of Elder Exploitation by Family or Friends.

1. Misuse of a power of attorney (POA). A power of attorney, whether entitled durable or limited, gives another person legal authority to act on your behalf as your agent or attorney-in-fact. While useful when you are incapacitated, out of town, or otherwise inconvenienced, it also sometimes gives wide access to your finances. Example: A son is named agent in a POA by his aging mother. He begins withdrawing money from her checking account to pay his own bills. She does not realize until months later that tens of thousands are missing. Missouri law: Under RSMo § 404.710, a power of attorney must be used in the principal’s (mother’s) best interests. Misusing it, or self-dealing, can result in civil liability, and even criminal charges under RSMo § 570.145 (financial exploitation of the elderly).

2. Manipulation or undue influence in estate planning. Older adults often change their wills or trusts late in life, sometimes under pressure from a family member who isolates them from others. Our firm participated in six trials in 2024 alone where a family member unreasonably influenced an older adult to change their will or file a beneficiary deed causing the bulk of their estate to be consumed by that one family member thereby excluding other loved ones from distribution. Now, this is not to say we do not see legitimate and reasonable explanations for this exclusionary tactic in estate planning, but all too often the tactic and decision is not one made at a time of reason, but instead at a time of desperation or despair.

Example: A woman in her 80s changes her will to leave everything to her nephew, cutting out her two daughters. Later, it is discovered the nephew had moved into her home and discouraged her from speaking to her children and taken other measures such as removing communication devices from the home. Legal concern: This can be grounds to contest a will for undue influence. Missouri courts may invalidate an estate plan if coercion is proven (see In re Estate of Parker, 25 S.W.3d 611, Mo. App. 2000).

3. “Borrowing” money that is never repaid. Family members and friends may request money under the guise of a loan, with no real intention of repayment, or continuously “borrow” from accounts without permission. Example: A grandson living with his grandmother uses her debit card to withdraw $200 a week “until he gets back on his feet.” She never authorized this nor did the parties execute any written agreement to secure the terms of a loan, and now the grandmother’s resources are exhausted, and she cannot pay for her prescriptions and other essential needs of health, safety, and welfare.

Legal recourse: Under Missouri’s financial exploitation statute (RSMo § 570.145), even taking money “with consent” can be illegal if that consent was obtained through deception or undue influence.

4. Home and property theft. When an older adult owns a home or land, unscrupulous family members may try to gain control through fraud, coercion, or outright forgery. Example I: A man convinces his aging father to transfer the home deed “for Medicaid planning” but sells it six months later and keeps the money. Example II: A daughter convinces her father to sign and file a beneficiary deed giving her the family farm upon his death because she and her family have never been able to stand on their own feet and pay their own bills without the father’s regular contributions. The father falls for this sympathy topic yet again and thereby excludes his other four children from the farm’s distribution even though he regularly told others he planned to treat all of his children equally upon his death. Legal safeguards: Any real estate transfer should involve a licensed attorney. Missouri law considers fraudulent conveyance a civil and potentially criminal offense.

5. Digital and identity theft by family. Today, much elder abuse is digital: online banking, e-commerce, and even social media accounts are vulnerable. Example: A niece who helps manage online bills begins using her aunt’s Amazon account to buy personal items or opens credit cards in her aunt’s name. Federal law: Identity theft is a federal crime under the Identity Theft and Assumption Deterrence Act (18 U.S.C. § 1028). Victims can also report to the FTC and the Missouri Attorney General’s Consumer Protection Division.

Signs you may be a victim of the above-discussed frauds include: (a) Unexplained bank withdrawals or purchases; (b) Sudden changes in wills, deeds, or beneficiaries; (c) Isolation from friends, family, or professionals; (d) Missing valuables or cash; and (e) A caregiver or family member discouraging legal advice. What you can do: (1) Consult an attorney early and often. Have a local, independent attorney help draft or review legal documents, especially powers of attorney, wills, or trusts. An attorney can also detect red flags and make sure your documents are not being misused; and (2) Separate your finances. Do not add others to your bank accounts unless absolutely necessary. Use trusted third-party bill pay services or professional fiduciaries rather than family if appropriate; and (3) Use a revocable trust with a neutral trustee. Instead of handing full control to a family member, consider creating a revocable living trust with checks and balances in place. You can name a professional trustee or require co-signatures; and (4) Contact Adult Protective Services. If you or someone you know is being exploited, call Missouri Adult Abuse and Neglect Hotline at 1-800-392-0210. Reports are confidential; and (5) Know your rights under Missouri law. Missouri law offers strong protection for seniors: RSMo § 570.145 – Criminal penalties for financial exploitation of those 60+; and RSMo § 565.252 – Emotional abuse or intimidation of the elderly is a misdemeanor or felony depending on harm; and RSMo § 192.2405 et seq. – Reporting requirements for suspected abuse or neglect.

As hard as it may be to believe, exploitation by someone close to you is not just possible, it is increasingly common. But you are not alone, and you are not powerless. With the right professionals in your corner such as attorneys, financial advisors, and community advocates, you can protect your legacy, your independence, and your dignity. If you believe someone has taken advantage of you or a loved one, or if you want to avoid this calamity altogether, call my office. As an attorney in Jefferson City dedicated to elder law, I am here to help make sure justice is served.

Todd Miller is an attorney in Jefferson City, Missouri, focused on estate planning, elder law, and protecting older adults from abuse and exploitation. This article is intended for general educational purposes and should not be construed as legal advice. www.toddmillerlaw.com (573) 634-2838.