Elder Financial Exploitation: A Complete Legal Guide to Identifying, Stopping, and Recovering Stolen Assets

by Michael A. Hackard

Publication Date January 6, 2026 in Elder Financial Abuse

Elder financial exploitation is the illegal or improper use of an older adult’s funds, property, or assets. It is the fastest-growing form of elder abuse in the United States, with annual losses estimated at $28.3 billion. Despite these staggering numbers, the majority of cases go unreported and unrecovered.

This guide explains how elder financial exploitation occurs, the legal remedies available to victims and their families, and the strategies experienced attorneys use to identify, stop, and reverse financial abuse. While specific statutes vary by state, California’s elder abuse framework serves as a national model that many jurisdictions have adopted in whole or in part.

What Is Elder Financial Exploitation?

Elder financial exploitation occurs when someone illegally or improperly uses an older person’s money, property, or assets. Under California Welfare and Institutions Code Section 15610.30, financial abuse of an elder includes taking, secreting, appropriating, obtaining, or retaining real or personal property of an elder for a wrongful use or with intent to defraud, or by undue influence.

Federal law, through the Older Americans Act (42 U.S.C. § 3002), defines exploitation as the fraudulent or otherwise illegal, unauthorized, or improper act or process of an individual that uses the resources of an older individual for monetary or personal benefit, profit, or gain.

The distinction between “financial abuse” and “financial exploitation” varies by jurisdiction, but both terms describe the same core conduct: someone taking advantage of an elderly person’s vulnerability to misappropriate their assets.

Who Commits Elder Financial Exploitation?

Research consistently shows that family members account for approximately 60% of elder financial exploitation cases. The remaining 40% is split among caregivers, neighbors, new acquaintances, and professional fraudsters. This distribution has significant legal implications because different perpetrator relationships trigger different legal presumptions and require different evidentiary approaches.

Attorneys who handle elder financial abuse cases recognize four primary perpetrator patterns:

1. Care Custodian Exploitation. A hired caregiver gradually isolates the elderly person from family and friends, controls access to information and sometimes medications, and eventually arranges for the elder’s estate plan to be revised in the caregiver’s favor. Many states have enacted statutory presumptions of undue influence when caregivers receive donative transfers. California Probate Code Section 21380 creates a rebuttable presumption that any transfer to a care custodian during the custodial relationship (or within 90 days before or after) is the product of fraud or undue influence. Similar statutes exist in Florida, Texas, Illinois, and other states.
2. Spousal Disinheritance Schemes. A third party—sometimes a new romantic interest, sometimes a family member—targets a married elder, acquires power of attorney, isolates the elder from their spouse, and in some cases procures a divorce. Once a divorce is finalized, the spouse loses all inheritance rights. These cases are particularly complex because they may involve proceedings in both family court and probate court, and timing is critical to preserve the spouse’s standing.
3. Stranger or Neighbor Exploitation. A socially isolated elder suddenly has a new “best friend” who appears without any prior relationship. The friendship escalates rapidly from casual contact to financial involvement to changes in estate planning documents. These cases often lack the statutory presumptions that apply to caregivers, requiring attorneys to prove undue influence through traditional evidentiary methods.
4. Family Trustee Misconduct. A family member serves as trustee of a parent’s or grandparent’s trust, delays providing accountings, begins treating trust assets as personal funds, and threatens beneficiaries who ask questions. These cases involve breach of fiduciary duty and can trigger significant fee-shifting provisions when the trustee’s conduct constitutes bad faith.

Red Flags That Indicate Elder Financial Exploitation

Attorneys and families should watch for warning signs in both financial records and family dynamics.

Financial Document Red Flags:

• Large withdrawals inconsistent with the elder’s lifestyle or historical spending patterns
• New signatories appearing on bank accounts or investment accounts
• Changed beneficiary designations on life insurance, retirement accounts, or transfer-on-death accounts
• Powers of attorney executed during hospitalization, medical crisis, or shortly after a cognitive diagnosis
• Multiple estate plan revisions in a short period, particularly when changes benefit a new acquaintance or caregiver
• Real property transfers, quitclaim deeds, or additions of names to title without clear consideration

Family Dynamic Red Flags:

• A recent caregiver or new acquaintance controlling access to the elder
• Family members reporting they have been “cut off” from contact
• The elder’s explanations for financial or estate planning changes sound scripted, inconsistent, or coached
• A new romantic interest with sudden involvement in financial matters
• The alleged influencer accompanies the elder to every professional appointment and speaks on their behalf

Civil Remedies for Elder Financial Exploitation

Victims of elder financial exploitation and their families have multiple civil remedies available, including statutory claims, common law causes of action, and equitable relief. The availability of enhanced damages and mandatory attorney fee provisions often determines whether a case is economically viable to pursue.

Statutory Elder Abuse Claims. Most states have enacted specific elder abuse statutes that provide civil remedies beyond traditional tort claims. California’s Elder Abuse and Dependent Adult Civil Protection Act (Welfare and Institutions Code Sections 15600-15675) is among the most developed and has served as a model for other jurisdictions. These statutes typically define financial abuse broadly and provide for enhanced remedies.

Enhanced Damages. California Probate Code Section 859 provides that a person who in bad faith wrongfully takes, conceals, or disposes of property belonging to an elder or to an estate or trust is liable for twice the value of the property recovered. This double-damages provision transforms cases that might otherwise involve modest recovery into economically significant litigation.

Mandatory Attorney Fees. California Welfare and Institutions Code Section 15657.5 provides that a prevailing plaintiff in a financial elder abuse action “shall” recover reasonable attorney fees and costs. This is not discretionary—it is mandatory upon a finding of liability. This provision is critical for case economics because it allows attorneys to accept elder abuse cases on contingency with confidence that fees will be recoverable.

Disinheritance Penalties. California Probate Code Section 259 provides that a person found liable for elder abuse “shall not” receive any property from the elder’s estate and shall be treated as having predeceased the victim. This remedy strips inheritance rights entirely and prevents an abuser from benefiting from their wrongdoing even after the victim’s death.

Common Law Claims. In addition to statutory claims, elder financial exploitation typically supports common law causes of action including conversion, fraud, constructive fraud, breach of fiduciary duty, unjust enrichment, and intentional interference with expected inheritance. Layering multiple claims maximizes potential recovery and ensures access to all available remedies.

How Attorneys Build Elder Financial Exploitation Cases

Effective elder abuse litigation requires systematic case development. Abuse rarely occurs in a single transaction—it unfolds over time through a sequence of isolation, influence, and financial transfer. Reconstructing this timeline is essential to proving the case.

Timeline Reconstruction. Attorneys develop a chronological narrative that establishes: (1) what the elder intended before the alleged influence began (baseline estate plan); (2) when the elder’s social contacts began to narrow and who was excluded; (3) when the alleged wrongdoer entered the elder’s life and under what circumstances; (4) medical records showing capacity concerns, cognitive assessments, or medication changes; (5) the sequence of document executions including powers of attorney, trust amendments, deeds, and beneficiary changes; and (6) the pattern of financial transactions including withdrawals, transfers, and new accounts.

Evidence Sources. Key evidence in elder financial exploitation cases includes medical records documenting cognitive status over time, financial records showing the flow of funds, communication records (emails, text messages, phone logs) demonstrating isolation, and witness statements from neighbors, prior caregivers, and family members who observed changes in the elder’s circumstances.

Multi-Theory Pleading. Experienced attorneys layer multiple claims in a single proceeding. A typical elder financial abuse petition might include: trust invalidation (lack of capacity or undue influence), trustee removal and suspension, demand for accounting, property recovery, statutory financial elder abuse claims with mandatory fee provisions, double damages under Section 859 or equivalent, and common law claims for conversion, fraud, and breach of fiduciary duty. Single-theory complaints leave money on the table and miss fee-shifting opportunities.

State-by-State Variations in Elder Financial Abuse Law

While California’s framework is among the most developed, other states have enacted significant protections:

• Florida: Florida Statutes Chapter 825 provides criminal penalties and civil remedies for exploitation of elderly persons. Florida also has care custodian presumptions similar to California.
• Texas: Texas Human Resources Code Section 48.002 defines exploitation and provides for civil remedies. Texas also allows recovery of attorney fees in certain exploitation cases.
• New York: New York Social Services Law and Penal Law address elder abuse, though without the comprehensive civil remedy structure of California.
• Illinois: The Illinois Financial Exploitation of Elderly and Disabled Persons Statute provides civil causes of action with potential treble damages.

Attorneys handling elder exploitation cases outside California should identify whether their jurisdiction has: (1) statutory presumptions for transfers to caregivers or fiduciaries; (2) enhanced damages provisions (double or treble); (3) mandatory attorney fee provisions; and (4) disinheritance penalties.

When to Involve Law Enforcement

Elder financial exploitation is both a civil wrong and, in most cases, a criminal offense. The decision to involve law enforcement depends on the circumstances of the case, the strength of the evidence, and strategic considerations about parallel proceedings.

Criminal referral may be appropriate when there is clear evidence of theft, fraud, or forgery; when the perpetrator poses an ongoing threat to the elder or others; or when criminal conviction would have collateral estoppel effect in civil proceedings. However, criminal proceedings can complicate civil discovery if the defendant invokes Fifth Amendment protections.

Frequently Asked Questions About Elder Financial Exploitation

What is the legal definition of elder financial exploitation?

Elder financial exploitation is the illegal or improper use of an older adult’s funds, property, or assets. Under federal law (42 U.S.C. § 3002), it includes any fraudulent or unauthorized act that uses an elder’s resources for another person’s benefit. State definitions vary but generally include taking property through fraud, undue influence, or breach of fiduciary duty.

Can I sue a caregiver who changed my parent’s trust?

Yes. When a caregiver receives a gift or inheritance from an elder they cared for, many states presume the transfer was the product of undue influence. In California, this presumption applies under Probate Code Section 21380 and can only be rebutted by clear and convincing evidence. You may be able to invalidate the trust amendment, recover the transferred assets, and obtain double damages and attorney fees.

What damages can I recover in an elder financial abuse lawsuit?

Depending on the jurisdiction, you may recover: the value of misappropriated assets, double or treble damages for bad faith taking, mandatory attorney fees, punitive damages in cases of malice or fraud, and disinheritance of the abuser from the victim’s estate. California provides all of these remedies through its elder abuse statutes.

How do I prove undue influence in an elder abuse case?

Undue influence is proven by showing: (1) the victim’s vulnerability due to age, illness, or cognitive decline; (2) the wrongdoer’s apparent authority or trusted position; (3) actions and tactics used to influence, such as isolation, controlling information, or initiating changes in estate planning; and (4) the inequity of the result. California Welfare and Institutions Code Section 15610.70 provides a statutory framework for these elements.

Is there a statute of limitations for elder financial abuse claims?

Statutes of limitations vary by state and by the specific cause of action. In California, financial elder abuse claims generally must be brought within four years, but the limitations period may be tolled during the elder’s incapacity or while the abuse was concealed. Trust contests may have shorter deadlines triggered by notice of the trust. Consult an attorney promptly to preserve your claims.

Can I recover attorney fees in an elder financial abuse case?

In California and several other states, yes. California Welfare and Institutions Code Section 15657.5 provides that a plaintiff who prevails on a financial elder abuse claim shall recover reasonable attorney fees. This mandatory fee-shifting makes contingency representation viable and distinguishes elder abuse claims from ordinary civil litigation.

What is the difference between financial exploitation and inheritance theft?

Financial exploitation typically refers to abuse that occurs during the elder’s lifetime—taking their money, property, or assets while they are alive. Inheritance theft refers to manipulation of estate planning documents (wills, trusts, beneficiary designations) to divert assets after death. Both involve similar perpetrator patterns and legal theories, and many cases involve both lifetime exploitation and estate plan manipulation.

Should I report elder financial abuse to Adult Protective Services?

Reporting to Adult Protective Services (APS) creates contemporaneous documentation of the abuse, which can be valuable in later litigation. However, APS reports are often confidential and may not be accessible in civil proceedings. APS referral timing should be considered strategically alongside civil litigation planning.

About the Author

Michael Hackard is the founder of Hackard Law, a California firm focusing on trust and estate litigation, elder financial abuse, and inheritance disputes. For over 30 years, he has represented families in complex cases involving undue influence, breach of fiduciary duty, and financial exploitation of the elderly. He consults with attorneys nationwide on elder abuse litigation strategy and is a featured speaker for BARBRI’s continuing legal education programming.