How Your Estate Plan Can Help Prevent Elder Exploitation

Elder exploitation is a growing problem in California and across the nation, with scammers, caregivers, and even family members taking financial advantage of aging individuals. But a strong estate plan isn’t just about passing down wealth after death—it can also serve as a powerful tool to protect your assets, your autonomy, and your well-being as you age.

What Is Elder Exploitation?

Elder exploitation includes any act where someone illegally or improperly uses an older adult’s money, property, or resources for personal gain. It can take many forms:

• Pressure to change a will or trust

• Unauthorized use of bank accounts

• Forged signatures on financial documents

• Emotional manipulation by caregivers or relatives

• Scams targeting those with cognitive decline

California law recognizes the seriousness of this issue. Under Welfare & Institutions Code §15610.30, financial abuse of an elder occurs when someone takes, appropriates, or retains property of an elder or dependent adult for wrongful use or with intent to defraud.

How Your Estate Plan Can Act as a Shield

A comprehensive estate plan can help prevent exploitation before it starts. Here’s how:

1. Set Up a Revocable Living Trust

Unlike a simple will, a revocable living trust gives you control over your assets during your lifetime and includes provisions for management if you become incapacitated. You can appoint a trustee you trust—or even co-trustees—to oversee your financial affairs. This can reduce the risk of someone taking control of your money without your knowledge.

✅ Bonus Tip: Include clear rules about when a successor trustee takes over and require proof of incapacity (such as letters from two physicians).

2. Appoint a Durable Power of Attorney Carefully

A durable power of attorney (POA) gives someone the legal authority to manage your financial affairs. But it can also be abused if given to the wrong person. You should:

• Choose someone you fully trust

• Consider naming two agents to act jointly

• Specify exactly what powers they do and do not have

• Work with an estate planning attorney to limit risk of misuse

✅ Bonus Tip: Include periodic reporting requirements to a third party, such as a family member or advisor.

3. Create an Advance Health Care Directive

Medical decision-making is another area prone to exploitation. With an Advance Health Care Directive, you appoint someone to make health care decisions if you become unable to. This document ensures your medical wishes are honored—and prevents others from stepping in without consent.

4. Include “No Contest” Clauses in Your Will or Trust

A no-contest clause discourages potential beneficiaries from challenging your estate plan out of greed or manipulation. California Probate Code §21310 allows for these clauses, provided they meet certain requirements.

5. Update Your Estate Plan Regularly

An outdated plan can be as dangerous as having no plan at all. Unscrupulous individuals may target elders who have old documents, vague powers of attorney, or trusts that don’t reflect their current wishes. Make it a habit to:

• Review your documents every 2–3 years

• Remove individuals who are no longer trustworthy

• Update fiduciaries if someone dies or moves away

6. Use Professional Fiduciaries If Necessary

If family dynamics are complex or there’s a risk of undue influence, consider appointing a licensed professional fiduciary to serve as trustee, power of attorney, or executor. In California, these professionals are regulated by the Department of Consumer Affairs and are held to strict ethical standards.

Learn more at the California Professional Fiduciaries Bureau

7. Store Documents Securely

Protect your estate planning documents from tampering by storing them securely:

• Use a locked file cabinet or safe

• Keep digital copies with password protection

• Inform your trusted agents and attorney of their location

Final Thoughts

Estate planning isn't just about what happens after you pass—it's also about safeguarding your independence and finances while you're alive. With the right tools and proactive strategies, your estate plan can serve as a strong deterrent against elder exploitation.

If you or a loved one is concerned about elder financial abuse or needs to update an estate plan to include protective measures, we can help.

📞 Call (626) 460-1763 or 📧 Email LV@MoravecsLaw.com to schedule a confidential consultation.