When we hear the term “elder abuse,” it often conjures up disturbing images of elderly people being physically hurt in nursing homes. But there is another form of elder abuse that is less publicized: financial elder abuse.

What Is Financial Elder Abuse?

Financial elder abuse occurs when an individual illegally or improperly uses an older person’s money, assets, or property for their own benefit. This often occurs without the elder’s knowledge or against their will.

Some of the more common examples of financial elder abuse include:

  • Stealing money or possessions;
  • Manipulating or pressuring the elder into changing a will, deed, or power of attorney;
  • Overcharging the elder or charging for unnecessary products or services; or
  • Refusing to pay rent while living with the elder.

Financial Elder Abuse in British Columbia

Financial elder abuse is a significant issue in BC. According to a 2021 survey conducted by the Canadian Securities Administrators, 31% of British Columbians know an elder who has experienced financial abuse. Yet 50% of respondents were unaware of the signs of financial abuse, and only 42% knew where to report incidents.

In this blog, we summarize a case example of financial elder abuse in BC and explain how it can be spotted, prevented, and the legal remedies available to its victims.

Financial Elder Abuse Case Example: Sibling Dispute Over Misappropriation of Mother’s Money

Legal cases of financial elder abuse often revolve around wills and estates and powers of attorney. The perpetrator might have exerted undue influence or breached their fiduciary duty, while the victim might have lacked testamentary capacity.

In the 2024 case of Calvert v. Menzies, the BC Supreme Court ruled in favour of a plaintiff who claimed that her brother misappropriated their deceased mother’s funds. The plaintiff alleged that her brother used their mother’s money for his benefit, and in doing so, harmed the estate and the plaintiff’s interests as a beneficiary.

Mother Gave Son Control of Her Finances Before Her Death

Before the mother’s death, the brother took control of her financial affairs. She then revoked the plaintiff’s power of attorney and granted it to the brother. She also added him as a joint account holder on her bank accounts.

After the mother died, the brother attempted to remove the plaintiff from her role as a co-executor of the estate. The plaintiff sued her brother for breach of trust, breach of fiduciary duty, and conversion, and sought the return of misappropriated funds to the mother’s estate. She also claimed punitive and aggravated damages. The brother denied all allegations, but the court concluded that he breached his fiduciary duties under the power of attorney by failing to manage his mother’s finances in her best interests and exerting undue influence over her.

How to Spot Financial Elder Abuse

To resolve a case of financial elder abuse, you first need to identify the problem. This is not always simple. However, certain signs indicate that financial elder abuse could be taking place. These include:

  • Irregular financial activity: Did someone get added to the elder’s financial accounts out of the blue?
  • Sudden change in living arrangements: Did the elder unexpectedly relocate?
  • Disappearing valuables: Have the elder’s belongings (cash, jewelry, or heirlooms) gone missing?

How to Prevent Financial Elder Abuse

Given the prevalence of financial elder abuse in BC, people need to recognize the warning signs. But as the adage goes, “An ounce of prevention is worth a pound of cure.” You can take several proactive steps to stop financial elder abuse before it happens. For example, you can:

  • Set up safeguards: Establish legal protections like powers of attorney.
  • Monitor finances for unusual activity: Regularly review the elder’s bank statements, credit reports, etc.
  • Avoid isolation: Encourage the elder to maintain connections with trusted friends, neighbours, and family.
  • Carefully vet new caregivers and acquaintances: Always conduct background checks and contact references before hiring someone new.

Legal Remedies for Financial Elder Abuse

The impact of financial elder abuse can be devastating. Legal remedies are available if you suspect that you or a loved one is a victim. Financial elder abuse carries potential criminal charges and civil remedies.

If the elder brings an action in civil court, possible remedies include:

Undoing Transfers of Property

The abuser might have pressured the elder to sign over a deed or include them in a will or trust. The court can reverse these transfers if the elder proves they were manipulated or lacked capacity.

Unjust Enrichment

Unjust enrichment occurs when one person unfairly benefits at the elder’s expense. In such cases, the law states that the benefit must revert to the elder.

Wills Variation

This legal remedy allows certain people to challenge a will if they feel they were unfairly excluded or not adequately provided for. Under BC’s Wills, Estates and Succession Act, the court can vary the will and redistribute assets even if the will is otherwise valid.

If the elder is mentally incapable, the Public Guardian and Trustee of BC can investigate the abuse and assume control of their financial affairs. Alternatively, the Adult Guardianship Act allows designated agencies to inquire about suspected abuse and to intervene if necessary.

The Impact of Financial Elder Abuse in British Columbia

Financial elder abuse is a serious problem that can have deep emotional and financial consequences. While it may not leave visible scars, its impact can be as damaging as physical abuse. In BC, growing awareness and evolving legal remedies are beginning to shine a light on this issue. By recognizing the warning signs, taking preventive steps, and understanding the legal remedies available, we can help protect vulnerable elders and ensure that justice is served.

Contact CM Lawyers for Legal Advice on Wills and Estates in Vernon and Salmon Arm

At CM Lawyers, our knowledgeable wills and estates lawyers are sensitive to the reality of financial elder abuse in BC. With that in mind, we provide comprehensive estate law assistance, including estate litigation and executor services. We create a supportive and welcoming environment to help clients navigate emotionally challenging situations. Our attentive lawyers and staff offer clarity and guidance, reducing stress for our clients.

With convenient locations in Vernon and Salmon Arm, CM Lawyers proudly represents clients throughout the surrounding areas, including Northern Okanagan and Shuswap. To schedule a confidential consultation, please contact us online or call our Vernon office at (250) 308-0338 or our Salmon Arm office at (250) 803-9171.