Financial exploitation of senior citizens has become an increasingly prevalent issue in recent years. This vulnerable demographic is often targeted not only because of their accumulated wealth but also due to the decline in cognitive abilities that can come with age. Financial professionals, such as bankers, brokers, and insurance agents, are well-positioned to detect and prevent such exploitation. However, concerns about privacy invasion and the potential for litigation have created a complex situation.
The Seniors Safe Act
To address these concerns and provide clearer guidelines, Congress introduced the Seniors Safe Act, which was signed into law by President Trump on May 24, 2018. This legislation, modeled after a similar law in Maine, aims to protect seniors from financial exploitation while also safeguarding financial professionals from potential lawsuits.
Training and Immunity Provisions
The Seniors Safe Act encourages financial institutions to provide training for their employees on how to identify and report suspected exploitation of senior citizens. This training includes recognizing common signs of financial exploitation and reporting any suspicions internally or, when appropriate, to government officials or law enforcement authorities. Once employees have completed this training, both the financial institution and the individuals are granted immunity from privacy invasion lawsuits that may arise due to their vigilance.
The Importance of Skepticism and Resistance
While the Seniors Safe Act empowers financial professionals to serve as active allies in the fight against senior exploitation, they can only serve as a secondary line of defense. Maintaining a healthy skepticism and resisting high-pressure sales tactics remain the first line of defense for seniors in protecting themselves from financial exploitation.
The Seniors Safe Act provides much-needed support for financial professionals to detect and prevent the financial exploitation of senior citizens. By providing training and immunity from potential lawsuits, the law aims to strike a balance between vigilance and privacy concerns. However, it is crucial for seniors themselves to remain vigilant and skeptical in the face of potential scams and high-pressure tactics.
For more information about how Legacy can aid in protecting your assets through a variety of beneficial services, visit our website. If you are a Legacy client and have questions, please do not hesitate to contact your Legacy advisor. If you are not a Legacy client and are interested in learning more about our approach to personalized wealth management, please contact us at 920.967.5020 or connect@lptrust.com.
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Any developments occurring after July 1, 2022, are not reflected in this article.
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It is not intended as legal, accounting, or financial planning advice.
