Risk Factors within Families Associated with Elder Financial Exploitation (EFE) by Relatives with Powers of Attorney (POA)

AAFCS Annual Conference, Jacksonville, FL, June 26, 2015

Presenter:

Virginia Vincenti, Ph.D., Professor of Human Development and Family Sciences, University of Wyoming

Other contributing researchers:Axton Betz-Hamilton, Ph.D., Eastern Illinois University

Don Rudisuhle, MBA, Certified Fraud Examiner, Laramie, Wyoming

Cynthia Jasper, Ph.D., University of Wisconsin-Madison

Karen Goebel, Ph.D., University of Wisconsin-Madison

Agenda for Presentation

Why elder financial exploitation (EFE) is a growing problem

Power of Attorney as a means of exploitation

Multi-state Research Project description Risk factors in families for EFE Implications for prevention Need for more research

EFE Hurts Families and Society,

Not Just Elders

Why EFE is a problemAnnual victim loss estimated at least $2.9 billion for substantiated cases only (2010 Census, MetLife Mature Market Institute, 2011)

Other monetary costs include• Medicaid due to elder impoverishment

• Justice system, community service• Prevention, education, & research

• Taxes and business losses

• Costs to secondary victims, e.g. family members & the family unit (lost wages, legal expenses, travel, copying, incidentals)

Often EFE is accompanied by other types of abuseEmotional and interpersonal impacts to elders and families EFE sometimes shortens lives of elders

EFE is a growing problem Older people are targets regardless of their

health and cognitive status. The world is rapidly aging. Two billion people will

be 60 years and older by 2050, more than triple the number in 2000 (World Health Organization).

Elderly are living longer. Some elderly have substantial lifetime savings,

but even the poor are exploited. Family members are the largest group of

perpetrators.

Prosecution is difficult Family secrets and underreporting, estimates of 10-44

cases for every one reported—no federal database. Some law enforcement, prosecutors, & judges see EFE

as a civil rather than a criminal matter.

• Elders shouldn’t get to decline pressing charges.

• Police are busy with serious violent crimes; investigating EFE is not a priority.

• Police are not qualified to make a legal judgment.

• Victim death before discovery is no reason to halt investigation.

• Non-prosecution gives green light to continue.(Paul Greenwood, Prosecutor of Elder Abuse, San Diego County, CA)

Prevention is key Family relationships are complicated and exchanges

of resources are common. Our USDA-NIFA multi-state research is focused on

prevention. Studies on families have focused on reducing

opportunities after POA agents have been appointed.

No research has focused on understanding what before end-of-life planning might lead to exploitation.

No research has be done that includes unreported cases.

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Methodology Phase I Original Objective: to understand the impact of EFE by

family members on the family as a whole Confidentiality prohibits obtaining pre-identified sample

• Volunteer convenience sample of family members (18 or older) with a elder relative (60 or older-CDC) exploited by a family-member POA agent

• In-depth phenomenological interviews to understand experiences

• Data included 14 interviews from 10 families.

• Themes identified (more on this later)

• Volume and complexity led to adoption of NVivo qualitative analysis software and mixed methods.

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Methodology Phase II Objective: to understand risk factors within families

that increase the likelihood of EFE by a family-member POA agent

• Volunteer convenience sample of family members (18 or older) with a elder relative (65 or older-AoA)

• exploited by a family-member POA agent

• not exploited by a family-member POA agent

• Survey to obtain demographic information, basic facts of the situation, & the family (quantitative)—developed from themes & lit.

• In-depth phenomenological interviews to gain understanding of survey data (qualitative).

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Why focus on Power of Attorney It is commonly used to give power to a “trusted”

person to act on elder’s behalf when unable. It has virtually no oversight. Internet POA forms and wills bypass

opportunities for careful planning. Family relationships are complicated and

exchanges of resources are common. Elders and their families, including POA agents,

often do not understand their powers and responsibilities.

Risk factors in families for EFE POA and aging shifts power in family units. Current and historical family dynamics Elder characteristics, values, and exchange

patterns (e.g. favoritism and enabling) Individual family member characteristics, values

(e.g. materialism, use of power, & sensitivity to others)

Interpersonal relationships (e.g. trust, jealousy, conflicts)

Dominance in interpersonal relationships Family communication patterns and skills

Implications for prevention Examine longitudinal view of family members and

relationships before selecting POA agent(s) and creating end-of-life planning documents.

• Build in accountability and safeguards in planning documents.

• Have open family discussions, including, but not limited to, what the elders want and do not want in terms of financial and health care decisions.

Educate elders, POA agents, & families about their responsibilities, prohibitions, and need for quick action if exploitation or other forms of abuse are suspected.

Reporting Options Adult Protective Services

• APS is a victim services organization for elders, exists in every US community. Their mandate is to investigate allegations and stop abuse when it is occurring.

Law Enforcement

• Local police, Department of Criminal Investigation, City or County Attorney, US Postal Inspection Service.

Free Legal Aid Services

• Many states operate federally-funded legal clinics that provide free services to communities

Elder Law Attorneys

• Most attorneys will offer a free initial consultation, don’t always educate POAs

State and local actions for prevention

State adoption of Uniform Power of Attorney Act Statues should define victims by age not

vulnerability Law enforcement follow-through on complaints that

are typically dismissed Community education to improve prevention and

increase reporting Train paramedics, dispatchers, police, bankers,

financial planners, lawyers, etc. State requirements for reporting—every citizen

More EFE research needed Our research is seeking multiple participants

from families with elders over 65 years of age:• successful experiences with family-member

POA agents • (reported or unreported) EFE experiences

with family-member POA agents

For more information contact Dr. Virginia Vincenti, 307-766-4079, vincenti@uwyo.edu