Four Types of Elder Financial Exploitation: Patterns Attorneys Recognize

Publication Date January 7, 2026 in Elder Financial Abuse

After three decades of litigating elder financial abuse cases, I’ve learned that exploitation rarely comes out of nowhere. It follows patterns—predictable sequences of isolation, influence, and financial transfer that experienced attorneys recognize immediately.

Understanding these patterns matters for two reasons. First, it helps families identify exploitation earlier, when intervention is more likely to succeed. Second, each pattern requires different legal theories and different evidence, so recognizing the pattern shapes litigation strategy from the start.

Pattern 1: Care Custodian Exploitation

The Pattern: A hired caregiver enters the elder’s life during a period of vulnerability—after a hospitalization, the death of a spouse, or a diagnosis of cognitive decline. Over weeks or months, the caregiver gradually isolates the elder from family and friends. They control who visits, what information the elder receives, and often what medications are administered. Eventually, the elder’s estate plan is revised to benefit the caregiver, sometimes dramatically.
Legal Significance: This pattern is so common that many states have enacted specific statutory presumptions. California Probate Code Section 21380 creates a rebuttable presumption of undue influence when a “care custodian”—anyone who provides health or social services for compensation—receives a donative transfer during the custodial relationship or within 90 days before or after. The presumption can only be rebutted by clear and convincing evidence. Similar statutes exist in Florida, Texas, Illinois, and other states.
Red Flags: The caregiver accompanies the elder to attorney appointments and speaks on their behalf. Estate planning documents are prepared by an attorney the caregiver selected. The elder’s explanations for changes sound scripted or inconsistent. Family members report being turned away or having phone calls blocked.
Evidence Strategy: Document the caregiver’s hire date and job duties. Obtain caregiver contracts and payment records. Establish the sequence: when did isolation begin? When were documents executed? Request the estate planning attorney’s file to examine the circumstances of document preparation.

Pattern 2: Spousal Disinheritance Schemes

The Pattern: A third party—sometimes a new romantic interest, sometimes an adult child with their own agenda—targets a married elder. The scheme unfolds in stages: first, the third party acquires power of attorney or other legal authority. Then, they isolate the elder from their spouse. In extreme cases, they procure a divorce. Once the divorce is finalized, the spouse loses all inheritance rights under the estate plan.
Legal Significance: These cases are especially complex because they may involve multiple court proceedings. A divorce filing in family court and a trust contest in probate court may proceed simultaneously, with the outcome of each affecting the other. Timing is critical—if the divorce finalizes before the exploitation is addressed, the spouse may lose standing to challenge the estate plan.
Red Flags: Divorce is filed when the elder has documented cognitive decline. A third party is “helping” with the divorce proceedings. The elder expresses conflicting wishes about the marriage. The spouse reports being physically prevented from seeing the elder.
Evidence Strategy: Medical records documenting cognitive status at the time of divorce filing are essential. Document the relationship between the alleged influencer and the divorce—did they recommend the attorney? Are they paying the fees? Communication records showing isolation from the spouse.

Pattern 3: The New “Best Friend” or Neighbor

The Pattern: A socially isolated elder suddenly has a new best friend. The friendship appears out of nowhere and escalates with unusual speed—from casual acquaintance to constant companion to joint bank account to trust beneficiary in a matter of months. By the time family members become aware, significant assets have already been transferred.
Legal Significance: Unlike caregiver cases, these situations typically lack statutory presumptions of undue influence. The wrongdoer isn’t a “care custodian” under the statute. This means attorneys must prove undue influence through traditional evidentiary methods—establishing the elder’s vulnerability, the wrongdoer’s apparent authority, the tactics used, and the inequity of the result.
Red Flags: The elder has a history of social isolation or mental health issues that make them particularly vulnerable to a new relationship. The new friend is much younger or from a different social background. Financial involvement escalates rapidly. The elder becomes defensive when family asks about the relationship.
Evidence Strategy: Establish baseline—how isolated was the elder before this person appeared? Document the timeline of the relationship and the timeline of financial changes. Look for patterns: did this person have similar relationships with other elderly individuals? Social media and background checks may reveal prior victims.

Pattern 4: Family Trustee Misconduct

The Pattern: An adult child is appointed trustee of a parent’s trust. Initially, everything seems fine. But over time, accountings become delayed or vague. The trustee starts treating trust assets as their own—living in trust property without paying rent, using trust funds for personal expenses, making distributions to themselves while shortchanging other beneficiaries. When questioned, the trustee becomes defensive or threatening.
Legal Significance: These cases involve breach of fiduciary duty, and the remedies can be substantial. In California, Probate Code Section 17211 allows fee-shifting against a trustee who “in bad faith” refuses to provide accountings or otherwise opposes legitimate beneficiary requests. This transforms what might otherwise be an economically marginal dispute into a case worth pursuing.
Red Flags: Accountings are overdue. Explanations for expenses are vague. The trustee is living in trust property. The trustee has made loans to themselves from the trust. Other beneficiaries have been threatened or intimidated.
Evidence Strategy: The accounting demand is both a legal right and a discovery tool. Force the trustee to document every transaction. Examine bank records for self-dealing. Look for patterns of commingling—trust funds flowing into personal accounts. Document the trustee’s lifestyle relative to their known income.

Why Pattern Recognition Matters

Identifying the pattern early shapes every aspect of the case: which statutory presumptions apply, what evidence needs to be gathered, which claims to plead, and how to frame the narrative for a judge or jury.

If you recognize any of these patterns in your own family situation, time matters. Evidence disappears, memories fade, and statutes of limitations run. The earlier intervention begins, the more options remain available.

Frequently Asked Questions

How common is financial exploitation by family members?

Research consistently shows that family members account for approximately 60% of elder financial exploitation cases. Adult children are the most common perpetrators, followed by grandchildren and other relatives.

What legal presumptions apply when a caregiver inherits from an elder?

In California and several other states, there is a rebuttable presumption that transfers to care custodians are the product of undue influence. This shifts the burden to the caregiver to prove by clear and convincing evidence that the transfer was legitimate.

Can I challenge a trust that was changed while my parent had dementia?

Yes. If a trust amendment was executed when the settlor lacked testamentary capacity, it can be invalidated. Medical records documenting cognitive decline, observations from family and caregivers, and expert testimony can establish lack of capacity.

What should I do if I suspect a family trustee is misusing trust assets?

Start by formally requesting an accounting. Under California law, beneficiaries have a right to regular accountings, and a trustee’s refusal or delay can itself be evidence of bad faith. If the accounting reveals problems, consult an attorney about trustee removal and surcharge.

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.