If It Can Happen to Brooke Astor (Allegedly), It Can Happen to You
By Elaine Schiff

Brooke Astor has been the doyenne of New York society and philanthropy for as long as anyone can remember. She has lavished millions of dollars on a vast array of causes, from the public library to botanical gardens to zoos. But once she hit the century mark a few years back, she began to slow down. Her only child, Anthony Marshall, was appointed her legal guardian — and that’s when the alleged trouble began.

According to court papers, Marshall has neglected his mother’s care and siphoned millions of dollars from her estate into his personal business ventures and to his wife’s account. However the case unfolds, the Brooke Astor story provides a cautionary tale of how one’s finances can be abused by family members. And it can happen to anyone, regardless of their economic or social status.

Hard to believe, but there are an estimated 5 million victims of elder financial abuse each year. Many states have recently passed laws allowing banks and other financial institutions to report suspicious activity in the accounts of older customers, to law enforcement authorities. But the growing problem now ranks as one of the greatest dangers faced by seniors.

Frayed trust
Sadly, the most likely perpetrators are relatives — children, grandchildren, siblings and spouses. Sadder still, such crimes often go undetected, since law enforcement cannot easily pierce the veil of family relationships.

Meanwhile, adult children, impatiently awaiting a large inheritance, sometimes take matters into their own hands. On the grander scale, they might convince a parent to sign over the deed to a house or give a large, unrecorded loan. On a smaller scale, they can obtain power of attorney from a parent and make unauthorized bank withdrawals. They can use a parent’s credit card for their own purposes.

One of the great ironies is that longer life expectancies can actually exacerbate the situation. Consider that Brooke Astor is 104 years old. Her son, Anthony, is 81. At stake is an estate worth in excess of $40 million. The running commentary is that the son just got tired of waiting.

Fortunately, there are ways to fight back and make sure one’s wealth stays protected. But first there’s the question of determining if a swindle is actually taking place. Some warning signs that something may be amiss:

A family member:

• appears a little too interested in convincing you to sign a power of attorney.
• who is supposed to be helping with your finances won’t let you see your checkbook, monthly banking statement or your cancelled checks.
• insists on attending whenever you wish to meet with your attorney.
• is badgering you to make major changes in your will.

The best strategy: Keep your defenses up and don’t assume that you can blindly trust your relatives.

If you sign a power of attorney, make sure it requires your agent to provide regular financial reports on your accounts to an outside accountant or lawyer who can independently verify that your finances are in order.

You can also have your bank or broker provide extra copies of your account statement to another family member, to make sure the individual who has your power of attorney is handling your affairs responsibly.

©Longevity Alliance, Inc. 2006