Recognising financial abuse: Legal protections for older people

It is difficult to imagine that anyone would exploit an older or vulnerable person for financial gain. Sadly, it is more common than you might think.

Hourglass, a UK charity focused on combating abuse, harm, and neglect of older people, reports that one in five people over the age of 60 experience some form of financial, physical, psychological, or sexual abuse or neglect. This means that around 2.6 million older people in the UK have been abused in some way.

The most shocking part is that most of this abuse is committed by family members.

Age UK defines financial abuse as “the mistreatment of someone in terms of their money or assets, such as their property.” Whilst anyone can be at risk of financial abuse, age, cognitive impairment, and disability can make older people more vulnerable.

Types of older financial abuse

There are several ways people perpetrate financial abuse against older individuals. Some of the most common types of abuse include:

• Predatory marriage - This occurs when a vulnerable person is enticed, coerced, or manipulated into marriage by someone who stands to gain financially through exploitation. It is important to note that marriage automatically revokes an existing will, and a spouse is the primary beneficiary under the  intestacy rules.
• Misappropriation of money - This often involves misusing an Enduring or Lasting Power of Attorney by making excessive, suspicious lifetime gifts or using a vulnerable person’s bank card for transactions without their knowledge or consent.
• Undue influence - Coercing an older relative into changing their will.

Warning signs of older financial abuse

Financial abuse is not always easy to spot. It is helpful to know the warning signs so you can look out for them within your own family:

• Unusual withdrawals or transfers from the older person’s bank account.
• The sudden, unexpected, heavy involvement of a previously distant relative or friend in the older person’s life.
• Sudden, drastic, and/or irrational changes to the older person’s will.
• The sudden creation and registration of a Lasting Power of Attorney with an unexpected choice of attorneys.
• The exclusion of other family members, who were previously close to the older person, from the older person’s life and decision-making.
• A sudden, heavy assumption of responsibility for the older person’s affairs by another person.
• The older person suddenly and unexpectedly enters into a new romantic relationship and/or marriage.

Steps to take when you notice the warning signs

If you notice warning signs, it is important to act quickly. 

Marriage

If you suspect a predatory marriage has happened, is happening, or maybe about to happen, the key is to act quickly. You are in a better position to intervene before the marriage takes place and, in any event, whilst the older person is still alive.

You can

• Lodge a caveat to prevent the marriage.
• Apply for an injunction to stop the marriage from happening.
• Apply to have an existing marriage annulled, provided the older person is still alive.

If they have since died, you may need to make a claim against the estate under the Inheritance (Provision for Family and Dependants) Act 1975.

Money

If you suspect the older person’s money is being misappropriated, you should report the matter to the police and/or the Office of the Public Guardian (OPG) if the abuse is being perpetrated by an attorney or deputy. The OPG may investigate the matter, remove the attorney or deputy, and/or require them to account for the missing funds. If you are an attorney or deputy and suspect someone else is misappropriating funds, it may be possible to bring a civil claim against the perpetrators.

Will

If you believe the older person has been coerced into making a will, you should advise them to destroy the will and make a new one. If the person lacks the capacity to make a new will you can apply to the Court of Protection to have a statutory will executed.

Finally, you can report any incidents of financial or other forms of abuse to the local authority as a safeguarding concern. The local authority is then under a duty to investigate.

Seeking legal advice

Older financial abuse can be a very sensitive topic, as it often involves close family members, making it difficult to raise concerns. Addressing these issues can feel like navigating a minefield. If you suspect something is happening but are unsure how to proceed, you should seek specialist legal advice to understand your position and the steps you can take to rectify the issue.