Be alert for caregiver financial abuse

Long version

Do you have a parent or other elderly relative who may soon need a caregiver? If so, be diligent when selecting the right person for the job — because choosing the wrong one could lead to big financial problems.

You might find a close family member or friend to serve as caregiver — someone who is honest and trustworthy, with good judgment and strong money management skills. However, in many cases, people hiring caregivers just don’t know how they’ll perform until the caregivers have begun work. A dishonest caregiver could steal valuables or cash from the person they have been paid to assist or incept their mail to obtain credit card numbers and other sensitive information to commit identity theft.

So, if you enlist a caregiver and begin having doubts about them, you’ll need to watch out for these warning signs of possible financial abuse:

  • Efforts to prevent the individual receiving care from speaking to family members
  • Inquiries into the location of estate-planning documents, such as a will
  • Interest in brokerage and retirement accounts, possibly with the intent to change transfer-on-death designations
  • Withholding financial or medical information from the family
  • Missing jewelry or property
  • Requests to be a joint holder on bank or brokerage accounts, sometimes followed by large cash withdrawals paid to the caregiver
  • Request for legal authority, such as a financial power of attorney naming only the caregiver

This last item — the request for financial power of attorney, or POA — is particularly concerning because of the scope of duties covered by this type of authority. That’s why it’s so important that all family members understand what a financial POA can and cannot do.

A general financial POA provides the agent with the authority to act on behalf of an individual’s finances, while a limited financial POA gives the agent the authority only for certain actions, such as paying bills, making withdrawals and opening or closing bank accounts. A general financial POA and a limited financial POA both can be durable, which means they take effect once executed, or springing, which is contingent on a specific event, such as a physical illness, mental incapacity or even a hospitalization.

Unfortunately, some POA agents have abused their responsibility by stealing money, making unauthorized transactions and even attempting to change the beneficiary designations on retirement accounts or insurance policies owned by the people for whom they provide care. These beneficiary designations can even supersede the instructions left in a will or living trust — and they can’t be changed by a financial POA.

If you suspect financial abuse by a caregiver, you can consider contacting your loved one’s financial advisor or attorney, if you know who it is. While they can't share information with you, they can check for red flags and contact your loved one directly. You also can get help from your state government. The National Adult Protective Services Association (NAPSA) provides a listing of offices in each state at napsa-now.org/help-in-your-area.

Finding a caregiver for a parent or other elderly relative can be emotionally difficult — but it doesn’t have to be financially draining. Get to know the caregiver if you can and watch for any red flags, so you can take comfort in knowing that your loved one’s finances are in good hands.  

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.

Number of words: 540

Short version (radio/print/online)

PSA: Be alert for caregiver financial abuse

TBA: May 12, 2025

Do you have a parent or other elderly relative who may soon need a caregiver? You’ll need to be diligent about finding the right person for the job — because choosing the wrong one could lead to financial problems.

If you hire someone but start to have doubts about them, watch for warning signs, such as withholding financial or medical information from the family, or a desire to be a joint holder on bank accounts.

An unscrupulous caregiver might also ask to be named financial power of attorney. Unfortunately, many people have abused this responsibility by stealing money or credit card information and even attempting to change beneficiary designations on retirement accounts or insurance policies.

If you suspect financial abuse, you can contact your loved one’s financial advisor, bank or attorney, if you know who it is. They can't give you information, but they can check for red flags and contact your loved one personally.

There is also help from your state. The National Adult Protective Services Association (NAPSA) provides a listing of state offices on its website.

If you select the caregiver carefully and stay alert for warning signs, you'll be helping your loved one keep their finances secure.

This content was provided by Edward Jones for use by (FA’s NAME), your Edward Jones financial advisor at (Branch address or phone #).

Member SIPC

11:60

Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.

Number of words: 199 (excluding FA’s name, address/phone number)