Understanding Financial Abuse in Seniors: A Growing Concern

Introduction to Financial Abuse

As individuals age, they often face declines in both physical and cognitive abilities. This can complicate their lives significantly. A report from the Society of Trust and Estate Practitioners (STEP) indicates that many estate professionals suspect financial abuse among seniors. In Ontario, lawyers are increasingly focused on elder law and estate litigation concerning Powers of Attorney (POAs) and will disputes linked to mental capacity concerns. The Canadian Bar Association (CBA) estimates that about 62.5% of seniors face financial abuse. This alarming statistic raises the risk of estate litigation, particularly among blended families. It also threatens seniors' savings and their families' financial security.

Definition of Financial Abuse

Financial abuse is a form of exploitation. It involves the unauthorized manipulation of a person's finances by someone they trust, such as a family member or caregiver. This issue predominantly impacts older adults. They may be particularly vulnerable due to isolation and health challenges. Abusers often create a rift between their victims and their family members. This fosters an unhealthy dependency to exert control over them.

Increasing Conflicts in Blended Families

Ontario has a significant number of blended families. This can be attributed to high divorce rates, remarriage, and the rise in common-law relationships. Children born outside of wedlock also contribute to this trend. These diverse family structures often encounter legal challenges, especially regarding estate and inheritance matters. Conflicts can arise among biological children, stepchildren, common-law partners, and spouses. Differing expectations and poor communication often drive these disputes. Furthermore, the lack of proper legal documentation complicates these issues, making resolution more difficult.

Growing Dependent Support Claims Due to Disinheritance

There has been a notable increase in dependent support claims against estates, particularly in blended families. These claims often arise when a trusted family member exerts undue influence over the testator. This can lead to the exclusion of biological children, spouses, stepchildren, and partners from the will. The Succession Law Reform Act (SLRA) allows dependents to seek financial support from an estate if the will does not adequately provide for them. They must prove their dependency to succeed in their claims. It is essential for those involved to act promptly due to the short limitation period.

The Complexity of Estate Litigation

Our team has managed a variety of estate litigation cases. Here are some classic examples of estate disputes:

In Walman (2015), the judge noted the strained relationship between the testator's second wife and her stepsons. This led to concerns about her influence over the testator’s financial decisions.

Another case, Seguin v. Pearson (2018), involved a testator who had previously been estranged from his family. He reestablished connections with his daughters before he died in 2011. Despite one daughter's claim of undue influence against the testator's chosen beneficiary, the court upheld the will’s validity. They cited the testator's mental state and the extensive legal advice he had received.

In Banfield v. Ristevska (2025), a dispute arose after the intestate death of an individual concerning a co-owned property in Toronto. The deceased's spouse sought to sell the property. Meanwhile, the deceased's mother contested the sale, claiming a trust interest in the property. The court ultimately denied the mother's request for an adjournment and approved the partition and sale of the property.

Similarly, in Frank v. Martin (2025), a case unfolded involving a long-term common-law relationship between two doctors. They faced disputes after separation. The applicant sought to sell their jointly owned home and requested spousal support. The respondent denied the claims and pursued a resulting trust. The court ruled in favor of the applicant, allowing the sale of the property and granting interim spousal support.

Overall, these cases deplete estate funds. They transform what should be a straightforward process into a protracted dispute over estate matters.

Internet Exacerbated Conflict in Estate Litigation

The internet has enhanced access to legal information. Individuals can locate resources more easily. However, this has also led to increased legal disputes. People often attempt to handle issues on their own. While many seek free online resources, this can be risky. Critical documents like wills and POAs require careful attention. Generic templates may create ambiguities and lead to disputes. Professional assistance is essential for protecting legal interests.

Navigating the litigation process can be complex. It demands significant training. An increasing number of individuals choose to represent themselves or seek partial legal assistance. This trend can unintentionally prolong the duration of legal proceedings. As a result, it can lead to higher legal expenses and potential cost penalties.

Lawyers have professional obligations to protect their clients' interests. They must adhere to the ethical standards of the Law Society of Ontario (LSO). Lawyers help clients understand their rights. They provide practical solutions and often resolve issues before trial. By clarifying important documents like wills and POAs, they ensure clients' wishes are honored. This also lessens the burden on families. Many lawyers offer these services at reasonable, fixed fees, providing personalized guidance for peace of mind.

Practical Strategies to Resolve Disputes

Estate litigation is a hot-button issue for many families. Here are some practical strategies to prevent disputes:

1. Hire a Professional

Obtaining legal and financial advice from qualified individuals, such as lawyers or accountants, can empower families. They can navigate complexities effectively, helping to avoid potential conflicts before they arise.

2. Remote vs. In-Person Signing

The Substitute Decisions Act (SDA) S.3.1(2)(a), (b) and the Succession Law Reform Act (SLRA) S.4(3)(a), (b) permit the use of audio-visual communication technology to execute a Will and POAs. This is allowed as long as certain conditions are met:

• At least one person acting as a witness must be a lawyer or a paralegal licensed by the LSO.

• The signatures must be contemporaneously made.

• The other witness can be anyone at least 18 years old, excluding the appointed attorney, their spouse, or the grantor's spouse or child. This requirement adds an extra layer of verification. It ensures the document's validity and helps to prevent fraud or undue influence.

  
  

Our law firm requires clients to sign their Wills and POAs in person. This ensures they understand the documents and sign without external influence. It also allows us to evaluate their capacity.

Conclusion

We emphasize the importance of proactive measures to combat financial abuse among seniors, especially in blended families. Engaging with professionals, such as lawyers and accountants, is recommended for resolving family dynamics and conflicts. Despite the potential upfront costs, the long-term benefits, including peace of mind, are significant.

Our team is actively addressing the potential financial exploitation of seniors. If you're experiencing these challenges or have any questions, we encourage you to contact us promptly. Your concerns matter, and we are here to provide the support you need.

Disclaimer

This content is for informational purposes only and does not constitute legal advice. Legal issues are complex and context-dependent. Therefore, advice should be tailored to individual situations.