You can help protect an aging parent from financial exploitation by watching for warning signs, limiting unnecessary access to accounts, and putting reliable legal safeguards in place before cognitive decline occurs. If you suspect exploitation is already happening, preserve the evidence, contact the financial institution, and report the situation promptly.

What Is Financial Exploitation of an Aging Parent?

Financial exploitation occurs when someone improperly or unlawfully uses an older adult’s money, property, or services for personal gain. The person responsible may be a stranger, caregiver, relative, friend, or someone appointed under a power of attorney.

Common forms of exploitation include unauthorized withdrawals, misuse of credit cards, forged checks, coerced changes to an estate plan, and pressure to transfer property. Scammers may also impersonate government agencies, financial institutions, or family members. Some use artificial intelligence to imitate a relative’s voice and create a false emergency.

What Warning Signs May Point to Financial Exploitation?

A single unusual transaction does not necessarily establish wrongdoing. Several unexplained changes, however, may justify a closer look. Warning signs include:

• Large withdrawals, new wire transfers, or unpaid bills despite adequate income
• A new person taking control of financial discussions
• Sudden changes to beneficiaries, account ownership, or estate planning documents
• Missing valuables, checks, bank statements, or property records
• Your parent expressing fear, confusion, or uncertainty about recent transactions
• A caregiver or relative isolating your parent from other family members

Changes in spending can also have an innocent explanation. Speak privately with your parent and approach the conversation without assuming that exploitation has occurred.

How Can Estate Planning Reduce the Risk of Exploitation?

Planning is most effective while your parent can understand the documents and make independent decisions. A properly prepared durable power of attorney can name a trusted agent to handle financial matters if help becomes necessary. The document can define the agent’s authority rather than granting broader powers than your parent wants.

Your parent may also consider naming a successor agent, arranging for another person to receive account statements, or using a trust to establish clearer rules for managing property. Banks and investment firms may offer alerts for large transactions or unusual account activity.

Review existing documents periodically. A power of attorney signed years ago may name someone who is no longer willing, available, or suitable for the role. Any change or revocation should be completed while your parent has the legal capacity to act.

What Should You Do If Exploitation May Be Happening Now?

Begin by documenting what you have observed. Save account statements, text messages, emails, property records, and notes from conversations. Do not confront the suspected person if doing so could place your parent or the records at risk.

You should also consider taking these steps:

• Notify the bank or financial institution about suspicious activity.
• Contact local law enforcement or call 911 if your parent faces immediate danger.
• Report suspected exploitation to Indiana Adult Protective Services online or at 800-992-6978.
• Consult an Indiana elder law attorney about available protective measures.

Indiana requires people who believe an endangered adult has experienced exploitation, neglect, or battery to make a report. APS can investigate qualifying reports, although an adult who retains decision-making capacity generally has the right to refuse services.

When May Guardianship Be Necessary?

If your parent can no longer manage financial affairs and existing documents do not provide adequate protection, guardianship may be considered. A court can appoint a guardian to manage some or all of an incapacitated person’s property or personal decisions.

Guardianship removes significant decision-making authority and requires a court proceeding. Less restrictive arrangements should be evaluated first. An attorney can help your family determine whether a power of attorney, trust, or other measure can address the concern without guardianship.

Take Action Before More Property Is Lost

Financial exploitation can drain accounts, disrupt care arrangements, and undo years of planning. Early legal action may help stop further losses and establish safer ways to manage your parent’s affairs.

DeClue Law Offices LLC helps Indiana families prepare powers of attorney, trusts, and other protective estate planning documents. We can also assess whether guardianship or another legal response may be appropriate when exploitation is suspected. Contact us to schedule a consultation and discuss how to protect your parent and their property.