Texas Closes the Loophole Used to Defraud Seniors and Others

 Posted on July 10, 2024 in Elder Law

S.B. 576 went into effect almost a year ago to restrict the exploitation of senior citizens and mentally disabled people. While scams and scammers change from week to week, this vulnerable group of seniors and the mentally disabled are common targets of "friends" and caretakers looking for a quick buck. All too often, these fraudsters have been able to get away with stealing money, possessions, and even identities, thanks to a loophole in Texas law. Comprehensive estate planning can help prevent unscrupulous people from taking advantage of the elderly.

If you suspect a vulnerable person is being taken advantage of by dishonest caretakers, friends, or greedy family members, take immediate action. A skilled Flower Mound estate planning attorney can help determine whether fraud has occurred and, if so, how to hold the person who committed the fraud accountable and ensure your loved one is safe. This can be a difficult time and a complex situation that benefits from speaking to an experienced lawyer.

How Will S.B. 576 Help?

As a Bexar County Probate Judge, Judge Veronica Vasquez routinely sees elements of senior exploitation come through her court. Vasquez noted she often sees allegations of senior abuse once it becomes necessary to remove the victim from his or her home. During the process, it is common to uncover many instances of family members, friends, and caretakers writing checks to themselves, often for a period of many years. These checks rarely have anything to do with the actual care of the senior.

Trusted caretakers and loved ones are simply taking advantage of seniors with dementia or other incapacitations. The legal loophole prior to S.B. 576 allowed these scammers to avoid criminal charges by claiming they "intended to give the money back."  Proving whether that statement was true or not was virtually impossible when dealing with an elderly victim or an otherwise mentally or physically challenged individual.

This allowed one swindler after another to walk away from their crime against a vulnerable person with no repercussions. S.B. 576 states that if an offender knew or should reasonably have known" that a person suffered from dementia, Alzheimer’s, or some other type of mental incapacitation, the transfer of money automatically becomes a criminal offense. The person who committed the fraud can now be charged with financial abuse of an elderly individual. While the bill went into effect on September 1, 2023, the language makes it retroactive for offenses committed prior to that date.

How Common is Financial Abuse Against the Elderly?

In 2023, the Texas Department of Family and Protective Services (DFPS) reported more than 83,000 instances of elder abuse across the state. This was an increase from 60,000 cases in 2022 and included physical, sexual, emotional, and financial abuse. In many cases, by the time a case is reported to DFPS, the elderly person has been abused in more than one way.

Most seniors want to remain in their own homes as long as possible. With more and more adult children moving away from their parents—sometimes across the country—these adult children rely on neighbors, paid caretakers, other family members, or family friends to look in on their parents. Unfortunately, this allows unscrupulous people to take advantage of the situation, which can go on for years before it is discovered.

How is Financial Fraud Against the Elderly Usually Accomplished?

A person who has a relationship with a senior or a close family member of the senior uses the elderly person’s financial resources and assets without consent, usually through manipulation or intimidation. Signs of financial fraud may include:

• Frequent ATM withdrawals
• The suspect is added to the senior’s bank accounts
• Checks made out to cash
•  Household bills are going unpaid.
• Long-time bank accounts are closed.
• Seniors with dementia sign new wills
• Documents appear to be forged

Financial exploitation is extremely damaging because the consequences can be long-term and devastating, causing depression, health issues, legal issues, and even homelessness.

Contact a Denton County, TX Lawyer Skilled in Elder Law and Estate Planning

A lawyer from Colbert Law Group PLLC, who has extensive experience in elder law and estate planning and who has served as an administrative law judge, is the best choice to help you and your loved one through this difficult time. Ensuring the current damage is contained and safeguarding the senior’s finances against future fraud is essential. Call a knowledgeable Flower Mound, TX, elder law attorney at 972-724-3338 to set up an appointment to discuss your issue.