How You Can Avoid Being Taken Advantage of Once You Become Elderly

Estimated Reading Time: 6-7 Minutes

A 2010 study by the Investor Protection Trust revealed a staggering truth: more than 7 million older Americans—1 in 5 people over age 65—have been victims of financial abuse.

This kind of exploitation often happens slowly, through misplaced trust or legal gaps in your estate plan.

Here’s how to protect yourself or your aging parents from being taken advantage of—before it’s too late.

1. Create a Thoughtful Estate Plan While You’re Still in Control

Don’t wait for a diagnosis or crisis to start planning.
Work with a Personal Family Lawyer® while you’re healthy and clear-minded.

Your lawyer becomes a long-term advisor, not just someone who fills in paperwork.
Choose trustees and agents who align with your values—not just someone close by or related.
Talk openly about your wishes and document them clearly.

Real-life example:
A retired woman named Carol named her son as her financial agent without realizing he had large gambling debts.

Within two years, most of her retirement savings were gone.

2. Be Smart About Who You Give Power To

Granting someone Financial Power of Attorney or naming a Healthcare Agent is serious.
You’re giving them authority to make major decisions on your behalf.

Ask yourself:

Do they manage their own finances responsibly?
Are they easily influenced by others?
Could they face personal legal or financial issues?

Tip: A trustworthy friend can be a better choice than a struggling family member.

3. Avoid Joint Bank Accounts—Use a Convenience Account Instead

Adding your child as a joint owner on your account gives them legal access to your money.
That also makes your funds vulnerable if they’re sued, divorced, or in debt.

Instead:

Ask your bank about a convenience account.
It lets someone help pay bills without giving them ownership.

4. Don’t Sign Over Assets to “Avoid Probate”

Some parents transfer property to their children’s names to “keep it simple.”

But that strategy creates serious risks.

Your child’s creditors or ex-spouse could go after what’s now technically theirs.
You may lose access to income or resources you still need.

Use a Revocable Living Trust instead:

Keeps your assets out of court
Keeps you in control
Avoids putting your financial safety in someone else’s hands

5. Never Add a Child to Your House Title

If your child ends up in a lawsuit, bankruptcy, or divorce, your home could be pulled into the mess.

You don’t need to give away your home to avoid probate.

You just need the right legal tool.

Better choice: Place the home in a Trust to protect it and pass it down privately and securely.

Practical Tips You Can Act On Today

Schedule a meeting with an estate planning lawyer—before any medical or memory issues arise.
Review your Power of Attorney and Trustee designations regularly.
Talk to your bank about adding a convenience signer, not a joint owner.
Don’t rush into transferring property. Ask about using a Trust instead.