Churning: Financial Abuse of the Elderly in the Insurance Context
July 21, 2017
Why Are Elders Targeted for Financial Abuse?
April 25, 2017
According to the National Committee for the Prevention of Elder Abuse, "Persons over the age of 50 control over 70% of the nation's wealth." In addition, "Some older people are unsophisticated about financial matters." This, coupled with the fact that "[m]any seniors do not realize the value of their assets (particularly homes that have appreciated markedly)," renders the elderly attractive targets for financial abuse by unscrupulous individuals and entities looking to make a quick buck at the expense of others. (http://www.preventelderabuse.org/elderabuse/fin_abuse.html .)
“'Elders are uniquely vulnerable to abuse because ․[..] they face advancing frailty, deterioration of mental capacity, and increasing reliance for assistance upon the families they raised.' Elders frequently relinquish control to those who have gained their trust, becoming emotionally and financially dependent. In such circumstances, abusers become the elder or dependent adult's trustee or executor and primary beneficiary. For example, most financial abuse is perpetrated by one person, usually a family member, or other trusted person." (Estate of Lowrie (2004) 118 Cal. App. 4th 220 (internal citations omitted).)