Financial Abuse — Lifetime Gifts & Transactions

Typically, the victims of financial abuse are elderly or infirm and unaware or unable to understand the true extent of the abuse. Sometimes, they’re dependent on their abuser and as such can be reluctant to raise or acknowledge concerns. 

While the most obvious form of financial abuse would be the misuse of money — another treating the victim’s money as if it was their own — the victim may be coerced or pressured into making decisions about their assets to the benefit of the abuser. This can include making changes to a Will or various and often substantial lifetime gifts.

Sadly, financial abuse isn’t always apparent until after the death of a victim, when steps are taken to administer the Estate. It’s then that the true extent of the abuse becomes evident.

We’re often instructed by clients in these instances. The legal principles are complex and our expertise can be vital in ensuring that all available investigations are completed and the merits of any case properly understood.

In predatory marriages, the perpetrator often isolates the victim from family and friends and arranges a marriage, which may take place in secret.

Since marriage creates significant legal advantages for a spouse, it can be used as a shortcut to financial gain — whether the benefit occurs during the lifetime or upon the death of the vulnerable party. 

Unless a Will is stated to be made in contemplation of marriage, a marriage will automatically revoke any previous Will. This often results in the new spouse inheriting the majority (if not all) of the vulnerable person’s estate. 

The consequences for disinherited family members can be devastating. Sadly, the new spouse can also gain control over the funeral arrangements and exclude the family.

A ‘lifetime gift’ is what it sounds like — a gift of cash or property made by one living person to another.

There are various reasons why a person may want to make lifetime gifts, with the majority of people opting to do so for tax and estate planning purposes.

However, if the reasons behind the gift aren’t properly documented, this can lead to a dispute after death about whether the gift was legitimate.

Lifetime gifts can be challenged on the basis that the person making the gift:

• made a mistake
• didn’t have the requisite mental capacity to make the gift (due to a medical condition, such as dementia)
• was influenced or coerced by another into making the gift.

Attorneys (usually appointed under a Lasting Power of Attorney) and deputies (appointed by the court) have a duty to act in the best interests of the person they’re assisting. They must keep proper records of financial transactions and dealings and can be called on to provide an explanation of any suspicious dealings.

The powers that attorneys and deputies have can be removed by the court if misconduct — or even just innocent mismanagement — is proven.

We have extensive experience of representing concerned family members, as well as other legal professionals in such cases.