How families rip off grandma

By Christian Science Monitor

For decades Brooke Astor appeared regularly in the society pages of New York newspapers, a grand dame noted for her dual roles as a philanthropist and socialite. But last month she suddenly became the subject of front-page headlines. A grandson, Philip Marshall, alleges that his father, Astor's only child, has neglected her care and spent some of her money on his own business ventures.

Anthony Marshall has publicly and vigorously denied the charges, insisting that he continues to provide the best possible care for his frail 104-year-old mother. A court hearing seeks to replace Marshall, her legal guardian, with Annette de la Renta (wife of fashion designer Oscar de la Renta) and the J.P. Morgan Chase Bank.

Whatever the outcome of the case, the allegations deal with a subject that remains largely invisible: elder financial abuse and exploitation. No statistics measure the scope of the problem, but professionals who work with older people say that it is on the rise as the ranks of seniors grow. They also emphasize that it happens at all social and economic levels.

"Financial abuse and exploitation are among the fastest growing forms of elder abuse nationally as measured by different studies and reports," says Bob Blancato, national coordinator of the Elder Justice Coalition in Washington, D.C. He expects the problem to intensify, noting that about 70% of wealth in this country is controlled by people age 50 and older.

Financial exploitation takes many forms. Those include taking money or property, forging an older person's signature and getting an older person to sign a deed or will through deception or coercion.

Family members can be undetected predators

Most cases of financial exploitation involve family members. "Usually it's someone who is dependent on Mom and Dad," says Chris Johnson, an attorney in Pasadena, Calif., who specializes in trusts and wills. "They need that big pot of money. They're unemployable, or didn't try to work, or have substance abuse problems. They end up isolating Mom and Dad. The other kids are not sure what's going on. It's easy to transfer the house to their name or take out mortgages on the house. They might use some of the money for Mom and Dad, but they use some for themselves, too."

He tells of one case where a sibling siphoned money from his parents' bank accounts to play Internet poker. "He was not very good at it and was dropping $3,000 a day," Johnson says. Ultimately he spent $250,000 on poker. "If other kids live in another state, they're not going to know. They may be suspicious -- he doesn't have a job, is driving a new car, saying he can't work because he's devoting all his time to taking care of Mom or Dad."

Increased longevity is contributing to the problem.

"Dramas are playing out in the courts as children imbued with a sense of entitlement grow increasingly impatient while awaiting their inheritance," says Joline Godfrey, president of The Independent Means, a financial education company in Santa Barbara, Calif. "If you are wealthy and tying up your children's or grandchildren's perceived 'good life,' there could be consequences."

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