Financial Abuse in Nursing Homes

Financial abuse of the elderly is a growing problem. The abuse may occur through consumer fraud scams, institutional fraud, and even through fraud perpetrated by a trusted friend or family member. Nursing home residents are particularly susceptible to financial abuse, and there are a variety of ways in which this abuse may occur. However, residents of nursing homes have important rights with regard to their finances. Contact an elder law lawyer to learn about these rights if you feel that you or a loved one may be a victim of financial abuse in the nursing home setting.

What are the forms of financial abuse?

Elderly nursing home residents are particularly vulnerable to financial abuses, because of their limited contact to those outside of the home. Additionally, many residents suffer from dementia, or overly trust nursing home workers.

The financial abuse of elders is generally defined as the improper use of an elderly person's financial resources for the benefit of another person. The abuse may come directly from the facility administration or its individual workers.

Some examples of nursing home financial abuses are:

• Theft or misuse of the elderly person's money
• Fraud
• Excessive pressure to turn over finances
• Forgery of the resident's signature
• Use of financial power of attorney for one's own financial gains
• Unauthorized withholding of funds from the resident
• Unauthorized spending of the resident's money

What is the law regarding financial abuse at nursing homes?

If a nursing home receives federal funding it must comply with federal regulations set forth in the Nursing Home Reform Act, and the majority of nursing homes in the United States receive federal funding. Under the federal standards, nursing homes are required to promote the resident's quality of life, while always maintaining dignity and respect. 42 C.F.R. § 483.15. Nursing home financial abuse not only robs the resident of his or her finances, but also robs the resident of his or her dignity, and violates the federal standard.

The federal standards specify safeguards regarding the finances of nursing home residents. For example, a resident has the right to manage his or her financial affairs. Specifically, a nursing facility cannot require residents to deposit their personal funds with the facility. 42 C.F.R. § 483.12(c)(1). However, if the resident does decide to deposit their funds, the facility must "hold, safeguard, manage, and account for" the funds. 42 C.F.R. 483.12(c)(2). Further, if a deposit is greater than $50, the nursing facility must deposit the funds in an interest bearing account, and provide the resident with a full and complete accounting that is up to the standards of generally accepted accounting principles. 42 C.F.R. § 483.12(c)(3), 42 C.F.R. § 483.12(c)(4).

In addition to the federal standards, individual state laws and the common law play a part in bringing nursing home financial abusers to justice. If you have concerns regarding the finances of a nursing home resident, speak with an elder law attorney in your area for further detail.

Warning signs of financial abuse

A nursing home resident may be unable to recognize when financial abuse has occurred. In such a case, it is up to the family members and friends of the resident to recognize the warning signs.

Some warning signs of financial abuse are:

• Resident reports of financial abuse
• Sudden changes in a will or other financial document
• Sudden changes or withdrawals from savings or checking accounts
• Unexplained disappearance of valuables
• Fear and anxiety when discussing finances
• Loss of trust

Conclusion

Unfortunately, financial abuses in nursing homes are far too common. If you fear that either you or a loved one has been a victim of nursing home financial abuse, contact an elder law attorney in your area, who is experienced with financial abuse of the elderly and nursing home law.

Form: Financial Abuse in Nursing Homes

To read and print out a copy of the form please link below.

Financial Abuse in Nursing Homes

You can download a free copy of Adobe Acrobat Reader here.

Copyright © 1994-2006 FindLaw, a Thomson business

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

View Previous Months' Selections