Financial abuse issues

[razz]

This story seems so sad but worth examining. I believe that CBC researched this quite well to avoid liability concerns.

http://http://www.cbc.ca/news/canada...buse-1.3876776

A 92 year old man, worth millions, allowed his daughter to be the accountant which was her legitimate business, then she and her brother allegedly later abused the trust placed. He is now poor.

How can one prevent this from happening?

Quotes:
Pete Stoopnikoff, 92, was a self-made millionaire, but now he says he can't afford to put gas in his car because two of his children took nearly all of his life savings.

He alleges his two oldest children drained his funds from a shared account that was meant to cover his living expenses and duped him into signing over two other multimillion-dollar accounts as well as properties.

His oldest daughter, Anne Filippone, became an accountant and started doing his taxes and later offered to take over all his bookkeeping.

"She was just wonderful to me," he said. "You couldn't ask for a better person."

In June 2014, Filippone suggested her father give her and her brother, Sam, enduring power of attorney to handle his financial affairs. Stoopnikoff agreed.

Stoopnikoff didn't become suspicious until June 2016, when he noticed a withdrawal from his joint account with the two children of more than $57,000 and phoned his credit union.

"And they told me, 'Your son has taken the money out,'" Stoopnikoff said. "I couldn't believe it, that my son would do that."
The cheque his son wrote to himself drew from an account that wasn't covered by one of the deeds of gift, but was specifically earmarked "for groceries, paying bills and living expenses."

But the biggest withdrawals from that account appear to have been made by Stoopnikoff's daughter, Anne Filippone, totalling more than $872,000.

On top of that, Stoopnikoff's name was removed from the two accounts covered by the deeds of gift he'd signed, denying him access to an estimated $3 million.

Stoopnikoff's story is part of a wider problem. A national report released last year estimates almost 250,000 elderly Canadians have been financially abused.

[iris lilies]

Thats too bad, but your question about prevention? No one can protect vulnerable people if those vulnerable people turn over their assets to the unscrupulous. But if someone has doubt, having multiple people assigned to act in tandem for the person incapacitated is key (although will be a problem is actual adminstration.)

Its like a contract, it is only as good as the integrety of the people signing it.

If the old guy was right in the head, he should have been keeping an eye on his balances.

we are working on estate planning, again (third attorney!) and I will ask my sister in law to be one of my health proxies, but ahe will not have access to money. She is not good with money. She is completely honest, she would just not be prudent with it.

[Teacher Terry]

When I needed to become medical POA for my friend her DH also made me the financial one too. I told him to also put his 2 adult kids on the account because at my age I could die and then it would be a problem to get her bills paid. I can't imagine stealing anyone's $ yet alone your parents.

[Tybee]

That is a sickening story. Under these circumstances, it would be so much better if the person hired someone from outside the family, wouldn't it.

[razz]

I have no concerns about my kids but DH and I decided to consolidate our assets in a credit union. After his passing, I gave our kids a substantial gift and them made joint POA with my lawyer and separate accountant aware. My CFP at the credit union knows my wishes and monitors my accounts. Beyond that, I don't know what one can do.

If the poor man had donated some of the considerable assets to family and charitable causes while he was in total control, it would have been less tempting/stressful, I think, but who knows?

[ToomuchStuff]

Doesn't surprise me. I had a friend, since passed, whose daughter stole his identity. (and been told by LEO's that identity theft from someone you know is common)
Have a couple other friends, who between their families (who seem to believe what is the ones, should be theirs), lost close to 2, million dollars.
That doesn't count the one that had probably a couple hundred thousand dollars worth of stuff stolen, by a drug dependent kid, or the kid that decided his grandfather wouldn't know, and put Sacajawea quarters, in place of the 50ish Krugerrand he had.
All too often, love of money, reveals ones baser instincts.

[pinkytoe]

FIL passed away in August leaving a mil plus to his wife. She is 82 and completely ignorant of their finances by choice so turned it all over to her kids. DH and I moved away so we have nothing to do with any of it so her daughter and other son are now paying her bills, moving money around, setting up accounts etc. There has also been a niece showing up all of a sudden to "help" with her daily matters. The daughter has been in dire money situations before so one wonders how this will all turn out. I keep trying to alert DH to get involved but he wants nothing to do with it.

[beckyliz]

He could've put his assets into a trust to take care of him - named a corporate trustee (bank or trust company). They have government oversight and liability insurance.

[LDAHL]

He could've put his assets into a trust to take care of him - named a corporate trustee (bank or trust company). They have government oversight and liability insurance.

That makes a good deal of sense. Even if your family is completely honest and has your best interests at heart, they may simply not know what they're doing. Also, it's a bit of an imposition if they're not being compensated.

[pinkytoe]

In my FILs case, family didn't realize that he qas unable to tend to most financial matters in his last years. He should have known to put all in a trust.