What Is Financial Abuse in Nursing Homes?
Financial abuse in nursing homes refers to the unauthorized or improper use of an older adult’s money, assets, or property. This can occur in various ways within a nursing home setting. Instances of financial exploitation or abuse can range from subtle manipulation to outright theft. Residents in long-term care are particularly vulnerable to this form of exploitation because of physical frailty, cognitive impairment, isolation from family, or reliance on staff for daily needs.
Physical neglect and mistreatment of nursing home residents often receive more attention. However, financial abuse can be equally devastating. It strips residents of independence, security, and dignity. In many cases, it’s also completely avoidable.
You may have grounds to take legal action if you believe a loved one has been the victim of nursing home financial abuse. At Munley Law, our elder financial abuse attorneys are prepared to help you fight for justice. Get started by contacting us today for a free consultation.
Common Forms of Financial Exploitation in Long-Term Care Facilities
Again, financial abuse in nursing homes takes several potential forms. It can involve staff, administrators, outside visitors, or even other nursing home residents. In some cases, family members or legal guardians may even take advantage of their position to misuse a resident’s funds.
Common examples of financial abuse include:
- Stealing cash or valuables from a resident’s room
- Misusing credit or debit cards linked to the resident’s account
- Forging checks or signatures on legal documents
- Convincing residents to “gift” money or amend wills under false pretenses
- Withdrawing funds from joint accounts without consent
- Billing for services not provided
- Coercing or manipulating residents into signing over power of attorney
- Fraudulently accessing benefits, such as Social Security or pensions
Even relatively small or infrequent acts can add up to significant losses over time. This is especially true for an elderly person on a fixed income with limited oversight of their finances.
Warning Signs That a Resident May Be a Victim of Financial Abuse
Detecting financial exploitation can be challenging. The perpetrator is often someone the resident relies on or trusts. However, families and friends should remain alert to changes that might signal abuse.
Red flags and signs of financial abuse include:
- Unexplained bank account withdrawals, missing ATM cards, missing funds or other unusual activity
- Sudden changes to wills, trusts, bank accounts, or powers of attorney
- Missing personal items (such as jewelry, electronics, or other items of value)
- Unpaid bills despite adequate financial resources
- A new “friend” or staff member suddenly being involved in money matters
- Confusion about recent financial decisions
- Reluctance to discuss finances or unexplained fear
Ask questions if you suspect financial abuse. Just remember, a vulnerable elderly person might not even realize they’re the victim of such exploitation. The fact that they deny being exploited doesn’t guarantee that financial abuse isn’t happening.
Facility Responsibility: When Is a Nursing Home Facility Liable?
Financial abuse often thrives in secrecy and silence. Many victims don’t even realize they’re being exploited. Others may be too embarrassed, ashamed, or scared to speak up. Individual staff members or other such parties often perpetrate this abuse.
Nursing homes may also be held responsible when financial exploitation happens under their supervision. Facilities have a duty to protect nursing home residents. Victims can seek compensation if a nursing home fails to live up to this duty. A facility may be held liable if:
- Staff members commit or assist in financial abuse
- Administrators fail to conduct proper background checks on employees
- Supervisors ignore complaints or suspicious behavior
- The facility lacks basic safeguards to protect residents’ valuables
- There is a pattern of theft or fraud, and no corrective action is taken
Those are just common examples. Review your case with a nursing home abuse lawyer. They can help you assess the situation and learn more about whether you likely have grounds to take action.
Legal Options and Recovery for Financial Abuse Victims
You may be able to pursue civil claims if your loved one has suffered financial abuse while in a nursing home. Doing so is a potential means of recovering stolen funds and holding the responsible parties accountable. Legal action can result in:
- Restitution of stolen assets
- Compensation for emotional distress or psychological harm
- Punitive damages (in severe cases)
- Termination of fraudulent legal documents (such as forged powers of attorney)
In cases involving facility staff, you may also file a claim against the nursing home itself for negligent hiring, supervision, or failure to safeguard the resident. The state may bring criminal charges separately. Time limits for bringing a civil case vary by state. Act promptly to avoid losing the right to sue.
How to Prevent Financial Abuse in a Nursing Home Setting
Preventing the exploitation of an elderly person starts with transparency, vigilance, and strong communication between family members and nursing home facility staff. No method is foolproof. However, taking precautions can deter bad actors and make abuse more difficult to hide. Consider these proactive steps:
- Keep valuables and financial documents outside the facility if possible
- Use automatic bill pay systems and limit cash on hand
- Assign power of attorney only to trusted individuals and review documents regularly
- Monitor account activity closely for unusual transactions
- Ask for itemized billing and receipts from the facility
- Visit regularly and observe how staff interact with your loved one
- Encourage your loved one to speak up about uncomfortable situations and document any warning signs
How Munley Law Can Help
Our nursing home abuse lawyers at Munley Law understand that it can be stressful when staff members of an assisted living community take advantage of a vulnerable loved one. We can help you fight for compensation on their behalf when this happens. Reasons to work with our nursing home abuse law firm include:
- We’ve served our clients for 65 years and counting. A law firm stays in business that long by delivering quality, consistent service.
- Our case results indicate we’re able to secure large settlements and jury awards. Although the goal is to convince an insurance company or liable party to offer a fair out-of-court settlement, we’re prepared to go to trial if necessary.
- We operate on a contingency fee basis. Our fee is a percentage of the compensation a client receives. As such, you only owe legal fees if we win your case.
Research indicates that the financial exploitation of elderly individuals results in billions of dollars worth of losses every year. If you notice signs of financial abuse, speak with our team to share your concerns and discuss your options.
Contact Munley Law Today
Do you suspect your loved one of an advanced age has been financially exploited or subjected to abuse while under the care of a nursing home? You have legal rights in these circumstances under relevant state laws. Get started today by contacting our team at Munley Law for a free consultation.
