Unfortunately, older adults and disabled or dependent adults are at risk of financial abuse.
Financial abuse happens when someone exploits another person’s financial resources for personal gain, causing harm or distress. This can happen in many different ways and often happens when a family member or caregiver misuses or takes money that belongs to someone they’re supposed to help care for. Older adults can also be vulnerable to scams that trick them into giving their money to a stranger. Victims often feel ashamed or fear retaliation, making it challenging to detect and address financial abuse. Psychologists play a crucial role in recognizing and addressing financial abuse through capacity testing and assessing for undue influence.
Capacity or Undue Influence Assessment With a Psychologist
Psychologists conduct capacity testing to evaluate an older adult's ability to make informed decisions regarding their finances. Using standardized assessments and interviews, psychologists assess cognitive functioning, memory, judgment, and understanding of financial matters. This evaluation helps determine whether the individual has the capacity to manage their financial affairs independently. Identifying cognitive impairments or vulnerabilities can aid in safeguarding vulnerable older adults from financial exploitation.
Undue influence happens when someone manipulates an older adult to influence their decision-making related to finances, property, a will, or other resources. Psychologists play a vital role in assessing for signs of undue influence by examining the dynamics between the older adult and those around them. They look for signs of control, isolation, intimidation, or dependency. By assessing the presence of undue influence, psychologists can identify cases where an older adult's decisions may not be entirely voluntary or in their best interest.
Capacity testing and assessing for undue influence are crucial steps in protecting older adults from financial abuse. These evaluations:
1. Identify Cognitive Changes:
Capacity testing includes an evaluation of cognitive function, so it can detect any decline that may impact a person’s financial decision-making. Recognizing cognitive impairments helps determine the appropriate level of support someone needs to manage and protect their finances.
2. Preserve Autonomy:
Capacity testing provides information about a person’s ability to make sound financial decisions independently. It helps protect their autonomy, ensuring they have control over their finances and are not subjected to undue influence. If someone has problems with financial capacity, a psychologist can also offer recommendations about what supports would allow them to maintain as much independence as possible. For example, if someone is having trouble paying bills on time because of a memory problem, something as simple as setting up autopay could give them the support they need, and allow them to remain in control of their finances with help from a trusted family member.
3. Uncover Manipulation:
When there is a question of undue influence, testing with a psychologist can shed light on situations where a vulnerable older adult may be under the control of others. This helps protect older adults from exploitation by recognizing signs of emotional manipulation, isolation, or threats.
4. Provide Intervention and Support:
Psychologists offer interventions such as therapy or referrals to appropriate legal and social services to address the impact of financial abuse. In California, Adult Protective Services investigates financial abuse, and each county has its own APS program. Anyone can make a report to APS if financial abuse is suspected.
WARNING SIGNS FOR FINANCIAL ABUSE: WHEN A PSYCHOLOGICAL EVALUATION MAY BE HELPFUL
It can be tough to spot financial abuse because victims often feel embarrassed or scared to ask for help. However, there are some signs that might suggest that someone is being financially abused:
Suddenly having money problems, like not being able to pay bills or strange activity in bank accounts.
Major changes in important documents like wills or power of attorney, especially when another person is encouraging these changes.
Feeling isolated or controlled by a caregiver or family member.
Losing valuable things without any good explanation.
Unusual purchases or money transactions that don't make sense.
Begin A Capacity Assessment In Los Angeles, CA
If you have concerns about an older adult in your life, or if you are an older adult and worry you may be in a financially abusive situation, a capacity or undue influence assessment may help bring clarity to the situation and stop further abuse. Dr. Reger is equipped to offer testing and assessment services across California. You can schedule an appointment by following these steps:
Contact (424) 262-1925 to schedule your appointment
Meet with a Los Angeles Psychologist for a capacity assessment
Start receiving protection from financial abuse!
OTHER SERVICES OFFERED WITH DR. REGER IN LOS ANGELES, CA
I am happy to offer capacity testing and a variety of other assessments. Other assessments include psych evaluations, cognitive and dementia testing, pre-surgical assessments, and med-legal evaluations. I also provide mental health services including individual therapy, counseling for older adults, and mental health consultations and presentations.