Mark Glendon

3 Ways to Protect Against Financial Exploitation

Unfortunately, financial exploitation is more common than most realize. In the United States alone, estimates show it costs almost $5 billion in losses annually. The biggest targets are society's most vulnerable: Older people and people with disabilities.

When you invest in estate planning for a beneficiarys disability, follow these tips to protect yourself and your loved ones from exploitation.

Designate a Trusted Contact

A trusted contact is someone whom financial institutions will contact whenever they detect questionable activity within accounts and investments. This person isn't authorized to make transactions, but their designation as a trusted contact allows banks to disclose some information.

Another option is to provide view-only access to online accounts. Having a trusted contact is an excellent way to provide more transparency. Loved ones or trusted friends can use their designation to spot potential exploitation attempts before they get out of hand.

Pay for Tracking Services

A worthy alternative to having trusted contacts is to pay for services that track bank accounts, investments and credit card activity. These services are becoming more popular every year, and millions use them to protect themselves from identity theft or exploitation.

The service will detect fraud attempts, scams and more. When they notice suspicious activity, they alert you to take action. Many tracking services also offer additional services if you fall prey to scams. For example, some will reimburse attorney fees or walk you through the steps for reporting crimes.

Have a Trusted Financial Power of Attorney

When estate planning for a beneficiarys disability, you must designate someone as a trusted power of attorney for all financial matters. Granting power of attorney means that the individual has the right to make financial decisions on behalf of someone else if they become incapacitated.

Power of attorney documents are legally binding, but they can be flexible. For example, someone could have multiple agents responsible for specific tasks, such as filing taxes or managing property. Whatever the case, the people who receive power of attorney should be trusted individuals with the one's best interests in mind.

Author Resource:-

Mark writes often about estate planning. His articles may include topics like real estate closing attorney and business succession laws to help the people in needs. You can find his thoughts at estate planning tips blog.