Helping Families Navigate the Financial Challenges of Age Transitions

Category: Fraud and Abuse (Page 1 of 2)

 Comparing and Contrasting Advanced Aging and Wealth Disparities 

Early in my career, my sales manager asked his group of trainees of which I was one, “what is the difference between and elderly gentleman and an old man.” His response... “Money.”

Aging is an inescapable aspect of the human experience, and yet, the pathways through advanced age can be profoundly affected by various socio-economic factors, particularly wealth disparities. While financial resources impact access to care and quality of life for older adults, wealth alone does not guarantee a positive aging experience. Instead, the availability of resources often hinges on the willingness and commitment of caregivers, healthcare professionals, and community systems to provide adequate support. 

Physical Health 

As we enter advanced age, we inevitably face a range of physical challenges, including chronic illnesses, mobility issues, and sensory declines. While the wealthier among us may typically enjoy better overall health outcomes due to greater access to quality healthcare, nutrition, and supportive living environments, having financial means does not inherently ensure effective care.   

Access to healthcare requires not only financial resources but also a network of committed healthcare providers, family members, and community support systems. Wealthy individuals might struggle if their caregivers are untrained, unavailable, or unwilling to facilitate their healthcare needs. Even with the best financial means, older adults can encounter barriers if there are no supportive systems in place to bridge the gap between available resources and personal needs. Michael Jackson had immense wealth and popularity, but towards the end of his life, he faced significant financial and personal challenges. Despite his financial resources, he had ongoing battles with management and family members over how his wealth was managed and was often surrounded by individuals who may not have had his best interests at heart. 

Additionally, affluent seniors may have access to physical therapy, personal trainers, or wellness programs, but their benefits depend largely on the commitment and expertise of those administering the services. If caregivers lack the necessary skills or motivation to engage individuals in maintaining their physical health, the impact of wealth can be diminished. Therefore, it becomes crucial to recognize that financial ability without the support of capable caregivers may not translate to better health outcomes in aging. 

Psychological Well-being 

The psychological dimensions of aging are equally complex, with the implications of financial status playing a pivotal role in mental health. Feelings of loneliness and depression are profound concerns for seniors, particularly those facing the isolation that can accompany advancing age. Wealth can potentially provide mechanisms to combat loneliness—such as access to social clubs, travel, or companionship services—but again, financial means do not guarantee emotional well-being. Howard Hughes, the world’s first billionaire, suffered from years of self-neglect and declining mental health. 

Wealthy individuals often benefit from networks that can provide such engagement, but they remain dependent on the reliability and affection of those around them. A lack of authentic connection can lead to feelings of emptiness, regardless of financial security. Conversely, seniors with limited financial means may find solace and community among family and friends, fostering psychological resilience even in the face of economic constraints. 

Moreover, the attitudes and values of society toward aging can affect how both wealthy and impoverished individuals perceive their aging experience. In cultures that devalue the elderly or view aging as a burden, both wealth and poverty can lead to feelings of despair. What is required, therefore, is not just a financial remedy but a cultural shift that underscores the importance of maintaining psychological health through connection and mutual respect. 

Cultural Perceptions 

Cultural contexts wield considerable influence over the experiences of aging and perceptions of dignity. In societies that honor elders, aging is often regarded as a time of wisdom and respect, with cultural rituals and familial support playing crucial roles regardless of economic status. Here, dignity can be preserved through community engagement and intergenerational connections, promoting a rich sense of belonging. 

However, wealth-driven cultures may regard aging more negatively, often associating it with decline and reduced productivity. This perspective can be particularly damaging for those who are financially disadvantaged. Yet, wealthier individuals are not entirely insulated from ageism—experiences of bias can still permeate their lives if society does not respect and value older adults. Actor Micky Rooney’s family gained control over his assets and personal freedom, even as the actor was objecting to the very authorities that were in place to protect him. Only after hiring and taking legal action, did he prevail with regaining his autonomy. 

The key to maintaining dignity across cultural spectrums lies in fostering environments that are inclusive and supportive. This can be achieved through community programs that promote understanding and appreciation of aging and encourage engagement between generations. Such initiatives can help bridge the gap between economic divides, reinforcing the idea that respect for elders should not be predicated on financial status. 

Dignity and Integrity Across Wealth Status 

Ultimately, dignity and integrity are universal entitlements that transcend financial circumstances. Regardless of wealth, all individuals deserve recognition and respect for their life journeys. The challenge lies in creating a society that honors this belief and ensures equitable access to resources and support. All of the world’s wisdom traditions include honoring elders as one of its core tenants, but we have a history of unobservance. Jesus rebuked the Pharisees for their legalistic adherence to tithing, while they pardoned parental neglect (Matthew 15:1-9).  

One promising trend is the development of intergenerational relationships that enable older adults to share their wisdom and experiences while offering younger generations insights into the realities of aging. In doing so, society nurtures an environment where all elders feel valued and empowered. 

In this world view, it matters not whether someone accesses care and services through charity, Medicaid, or from personal wealth, each is treated the same.  

The relationship between advanced aging and wealth disparities presents both opportunities and challenges. While financial resources can significantly influence physical health, psychological well-being, and cultural perceptions, they do not exist in isolation. The availability of these resources ultimately hinges on the commitment and compassion of caregivers, family members, and community networks. By recognizing and embracing the inherent dignity of every individual, regardless of their financial situation, society can cultivate an environment where all older adults are respected, valued, and supported in their journey through aging. In this way, the focus shifts from the limitations imposed by wealth disparities to the shared human experience of aging, highlighting the importance of connection, mutual respect, and integrity. 

When Mom or Dad Want to Marry…at 80!

It’s Valentine’s week and romance is in the air. One of the joys I get from lunching with Mom at her retirement community is to hear the latest gossip about the budding romances among the residents, most of whom are well into their 80’s and 90’s. There have been more than a few marriages that result from these new relationships, most occurring after a fairly brief courtship. As one fellow remarked to me one day, “son, at our age, it’s dangerous to buy greenn bananas.”

If you are the adult child of an aging parent who also happens to be single, you may one day be introduced to a “special friend” in their life. Normally, your reaction may be something like, “how cute” or “way to go Dad” but if the relationship quickly becomes more serious or if you’re suddenly asked to give your blessing to their marriage, this can be a very troubling event. In preparation for writing this article, I googled “aging parent wants to get remarried” and most of the search results were forum posts from adult children seeking advice on how to deal with Mom or Dad’s new romance that has gone from sweet to sour because now they want to get married!

All sorts of questions run through your mind and you may find yourself experiencing anger, fear, or resentment at the prospect of this person interrupting Mom or Dad’s perfectly lonely existence. Somewhere in-between the extremes of “I forbid it” (like that’s gonna work) and “It’s your life, do what you want” can be found a position of legitimate care for their happiness and concern that they not be hurt by the experience. Recently a judge intervened in the marriage of a couple in their mid-nineties due to concerns expressed by the bride’s daughter questioning the marriage’s legitimacy.

In his article titled “How to Deal With an Elderly Parent’s Remarriage – Resolving Issues” author and financial advisor Michael Lewis, gives some wise advice when talking to your aging parent about their choice to remarry late in life.

  • Be Respectful. You are speaking with the one remaining person who brought you into this world and who will always love you.

  • Try to Put Yourself In Your Parent’s Position. They are trying to make the best of a very difficult situation. They seek your blessing and understanding, so listen carefully and thoughtfully before making your own point or expressing your doubts.

  • Avoid Accusations, Recriminations, and Ultimatums. Your parent has already experienced and worked through the guilt often associated with remarriage after the death of the spouse.

  • Curb Your Instincts to Attack or Belittle Your Parent’s Choice of Mate. It is never a good idea to potentially offend your mother or father in such a petty manner.

On the other hand, there may be legitimate concerns about Mom or Dad’s new relationship. Studies show that as we age our brain’s ability to make sound judgments becomes impaired. This is not necessarily dementia, just biology. Most state laws include an elderly person in a group called “vulnerable adults” because of this biological fact.  

Three factors contribute to the vulnerability of an older person: diminished capacity, lack of informed consent, and undue influence. Each of these could be at work in an older person’s romantic relationship and any one of them would give question to the legitimacy of a marriage. For example, if Mom has diminished capacity – a condition that may have to be proven by a qualified physician – she might not have the legal capacity to enter into a marriage contract. Or suppose she has capacity but was not given enough information to give informed consent when she signed over control of her assets to her new spouse in a durable power of attorney. Or maybe she did know exactly what she was doing but signed the power of attorney to her new spouse anyway because he told her if she did not sign it, he would not take care of her in her old age, which would be subjecting her to undue influence

The best way to prevent either of these vulnerabilities from hurting either party is to have an honest conversation with your parent about your concerns. If you sense this new “special” person has interests other than companionship, then intervention might be required, but hopefully this can be avoided by remaining respectful of each of them and involving neutral parties. While keeping in mind the points that Michael Lewis makes above, I suggest a meeting with other family members and a neutral mediator.

Ask Mom or Dad if they are open to discussing their marriage with a family counselor, clergy member, or attorney.  It could be that a more neutral party will come across as less threatening than you and they may be more willing to listen to that person than to you.  Speak openly about your concerns over property and other assets. Even if you have blessed the marriage and no sign of the three areas of vulnerability are evident, they will likely be unaware or unconcerned about property and financial division. Have them meet with an estate attorney or other qualified advisor who can help them understand the complexities of blending two financial households. Once they realize the burden this might place on their surviving children, they will more likely be willing to take the appropriate steps.

It seems that many adult children assume the proper role of a parent who becomes widowed late in life is to just remain that way for the rest of their life. In doing so, we diminish their dignity by denying them the companionship and affection that they enjoyed for 50 or 60 years as if that need vanishes when their spouse predeceases them. Instead, we could adopt the same position as we might with our own adult children: blessing a relationship that makes them happy while protecting them if we can from those that might hurt them. It’s a delicate balancing act on either end of the age spectrum. 

Constructive Trusts – When Trust is Broken

Elder financial abuse is a distressing issue that affects vulnerable seniors, often leading to significant financial losses. In the realm of legal remedies, one powerful tool used to address such cases is the constructive trust. But what exactly is a constructive trust, and how does it work?

At its core, a constructive trust is a legal remedy aimed at correcting unjust enrichment and ensuring that property or assets are returned to their rightful owner. Unlike a traditional trust created by a formal legal agreement, a constructive trust arises by operation of law. It’s a flexible and equitable concept that courts employ when they find that someone has obtained property, assets, or benefits in an unfair or wrongful manner.

Constructive trusts are not exclusive to elder financial abuse cases; they can be applied in various situations where one party has benefited at the expense of another without a proper legal basis. For purposes of our discussion however, we’ll focus on their use in elder financial abuse situations.

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Indiana Case Highlights Family Tensions in Selecting Financial Caregivers.

Most people should be able to choose a loving and honoring adult child or family member as a financial caregiver. An Indiana case highlights the importance of integrity when making the choice.

In the case of Biggs vs Renner, Terri Renner and Sherry Biggs are siblings locked in a court battle over their mother’s care, with Terri claiming that Sherry abused her position as agent under her mother’s Power of Attorney, and used their mother’s funds for her own benefit. Court records would confirm Terri’s fears.

Sherry admitted to converting her mother’s accounts first to a joint account, and then to accounts only in her name. She offered a promissory note to court as evidence that she intended to pay the money back, but the the note was largely unenforceable due to her mother’s incapacity, and no payments had been made so far. In addition, Sherry allowed her daughter and husband to live rent-free in her mother’s home and paid several thousand dollars of improvements from her mother’s accounts that did not directly benefit her mother.

Terri sought a court’s intervention to remove her sister as attorney-in-fact, and to insert a disinterested third party as guardian of their mother’s estate. The court granted Terri’s petition, but Sherry objected on appeal.


A Power of Attorney is a legal arrangement whereby one person grants authority (let’s call that person the grantor) to another person to act in their behalf as attorney-in-fact, or agent while they (the grantor) are alive but unable to act for themselves. Acting as agent under a power of attorney is a fiduciary responsibility that obligates the financial caregiver to exercise the powers granted solely for the benefit of the grantor. A financial caregiver has to keep accurate records and is prohibited from using the property of the grantor for their own purposes. Being a financial caregiver is an honorable position when conducted honorably.

Why name an adult child as financial caregiver?

It is understandable that an older person would want to name an adult child as financial caregiver on their behalf. We want to believe our own children would act honorably on our behalf, or perhaps we have regrets about our own parenting and feel guilty if we do not atone ourselves by putting them in charge. Sometimes a parent will name an estranged child in hope that the trust shown by the parent will mend a broken relationship. Parents will often do whatever it takes to keep a child close to them. However, the selection of a financial caregiver should place emphasis on the dependability and the integrity of the individual over familial connections. This may require difficult decisions and may even alienate family members, but if early and intentional discussions on the subject can be held with the appropriate family members, perhaps these kinds of conflicts can be avoided.


Note: The information above is for general information only and should not be relied upon to make legal or financial decisions Advice as to the preparation and use of Powers of Attorney should only be provided by a qualified attorney licensed in your state.

Daughter and partner try to force the sale of parent’s home.

A Massachusetts case illustrates the care that must be exercised when giving property interests to others and how those interests are titled. Donald and Suzanne Bragdon owned their home as Tenants by Entirety, a form of holding title available only to married individuals. They subsequently conveyed one-half of their home to their daughter, Laurie Durken, and her partner, Terrence McCarthy as co-joint tenants between all four of them, but also retained a life estate in the property. A retained life estate divides property ownership into two parts – one part for the living owner, and one part for the residual owner that only vests after the living owner’s death.

So, we have three forms of holding title going on here – a tenancy by entirety for half the house between Donald and Suzanne, a joint tenancy between all four individuals for the other half of the house, and a retained life estate in the entire property by Donald and Suzanne. Whether or not this was intentional planning I do not know, but it’s a recipe for disaster and it nearly occurred for Donald and Suzanne but for the protection against forced division that their various titling gave them.

Sadly, Laurie and Terrence sought to partition the property – essentially force the sale of it presumably because they needed the money. As you would expect, Donald and Suzanne objected to this idea of forcibly selling their home, and ultimately the conflict wound up in court. Laurie and Terrence argued that they owned a “possessory” right in the property regardless of the existence of the retained life estate that gave them the right to partition. Donald and Suzanne said the life estate superseded any right of possession Laurie and Terrence may have until after their deaths.

After examination of the deeds executed between the four, the courts agreed with Donald and Suzanne.

McCarthy and Durkan relinquished their prior possessory undivided one-half interest in the property by voluntarily signing onto the 2013 deed as grantors. Thus, the Bragdons are entitled to the benefit of the presumption that one who signs an instrument has read and understood its contents and has assented to its terms and legal effect. By the 2013 deed, the Bragdons hold a life estate in 100% of the property, and McCarthy and Durkan hold the remainder interest in 100% of the property. As McCarthy and Durkan do not hold any present possessory interest in the property, they are not entitled to partition. Their petition for partition must be dismissed.

Source: MCCARTHY vs. BRAGDON, MISC 20-000118

The lesson here is to seek competent legal advice when it comes to gifting property interests to 3rd parties and forms of holding title. A knowledgeable attorney will not only understand the operation of title law but can also give guidance and warnings about these kinds of what-if scenarios. In this case, an ounce of prevention would have been worth more than the pound of cure.

Britney Spears has been under a California-ordered conservatorship since 2013, and in recent years has tried unsuccessfully to have her father, Jamie Spears, removed. Attorneys for Jaime Spears have maintained that he “has always acted in the best interests of his daughter.”

Conservatorships are court-ordered arrangements presumably designed to protect those who cannot manage their own affairs due to some physical or mental limitation. Each state has its own rules for conservatorships and courts may appoint anyone it chooses to be in charge of someone’s property.

A spotlight on Britney Spears’ conservatorship has led lawmakers in one state to consider changes, but some say focusing on the pop star could overlook the needs of those with disabilities.

 

Source: #FreeBritney Movement Prompts Lawmakers To Consider Changing Conservatorship Rules – Disability Scoop

Suspension imposed after appeals judge is accused of making himself a beneficiary of ex-client’s will

The Georgia Supreme Court has suspended a state appeals judge with pay during an ethics investigation.

The court suspended the judge, Christian Coomer, on Wednesday, Law360 reports.Coomer is accused of making himself a beneficiary and his wife the executor when drafting wills for a then-client, according to Law.com, Law360 and the Daily Tribune News.

Coomer is also accused of drafting an irrevocable living trust for the client that designated Coomer as the trustee and beneficiary, with the power to transfer funds to himself while the client was still alive, according to the Dec. 28 charges by the Georgia Judicial Qualifications Commission.

Source: Suspension imposed after appeals judge is accused of making himself a beneficiary of ex-client’s will

Court of Appeals Affirms That Will Was Product of Undue Influence

The Law Firm of Faegre Drinker Biddle & Reath LLP, recently published the trial court results of a case involving a charge of Undue Influence brought by the two adult children of William Moriarty.

Mr. Moriarty was widowed in April 2016. William had been diagnosed with depression, anxiety and congestive heart failure following Doreen’s death. Eve, who had been married three times previously and had met William while Doreen was alive, began dating him within weeks after Doreen’s death.

Afterward, Cathy and Paula noticed a marked change in their relationship with their father, though they did not learn of his and Eve’s relationship until soon before they were married. Eve and William married about seven months after Doreen’s death, and neither Cathy nor Paula were invited to, or attended, the wedding.

From firing William’s caregiver to procuring a new will for him through her own lawyer, Eve also was named as joint owner of a new, large home purchase shortly after their marriage, as well as of a new $60,000 Lexus.

Relying on an expert witness, the court determined that William’s physical and psychological impairments made him vulnerable to undue influence.

The trial court was convinced that Eve exercised undue influence over William due to multiple facts presented at trial, including the dramatic shift in his estate plan only one month before his death and Eve’s involvement in procuring his will and surrendering his life insurance policy. The trial court was less than impressed with Eve’s demeanor in court, noting her “flat affect during emotional testimony,” which left the court “with no confidence that Eve married William because she loved him and with the conclusion that Eve planned to take all of William’s money all along.”

Ultimately, the trial court declared that the purported will was invalid due to William’s lack of capacity and Eve’s undue influence over him, and it ordered that William’s estate be distributed as if he had died intestate.

The court also ordered Eve to transfer title of bank accounts, the house and the car — all of which she otherwise would have received as a joint owner — to William’s estate.

Source: Court of Appeals Affirms That Will Was Product of Undue Influence | Publications | Insights | Faegre Drinker Biddle & Reath LLP

Not So Green Acres

In this episode of The Case Files, I profile a 2010 Texas case involving a daughter’s misappropriation of her deceased father’s trust funds as well as her aging mother’s personal assets. The characters from the 1960s sitcom Green Acres provide a little humor to an otherwise serious situation. Enjoy and learn!

https://youtu.be/cVZsNE85HbE

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