How FEPA Protects Michigan’s Elderly Against Financial Exploitation
In 2021, Michigan passed the Financial Exploitation Prevention Act (FEPA or Act) which took effect last September. FEPA sets forth new requirements on financial institutions to report financial exploitation of vulnerable adults to adult protective services and law enforcement in Michigan, and was a result of work led by the Department of Attorney General’s Elder Abuse Task Force.
The Elder Abuse Task Force was launched by Attorney General Dana Nessel and consists of more than 55 different organizations in the public, private, and nonprofit sectors working together to combat elder abuse.
FEPA requires financial institutions to develop and implement policies, training, and procedures for identifying and reporting the exploitation of their customers, and allows them to freeze customer transactions or assets. Procedures prescribed by the Act included asking questions during a suspicious transaction, or placing a hold on the transaction for up to 10 days to give law enforcement an opportunity to make sure it’s legit. The financial institutions that comply with FEPA receive immunity from criminal, civil, and administrative liability for actions taken in good faith under the Act.
Exploitation of the elderly is becoming more common each year, with scams ranging from phone calls demanding money, fake investment opportunities, and even family members stealing from elderly relatives. Elderly victims of financial exploitation do not know that they are being taken advantage of, and oftentimes family members are the sole defense against these scams. But staying on top of it everyday can be challenging.
FEPA allows financial institutions to be a second set of eyes to identify exploitation.
The training of professionals to identify abnormal financial activity from their customers can provide early identification of potential scams and theft from elderly persons. Individuals and financial institutions have a vested interest in preventing these scams and FEPA provides another level of protection for both.
In one story from the Traverse City Record Eagle, a conservator appointed to manage the funds of a 95 year old World War II veteran, was charged with stealing over $10,000 from the elderly gentleman. In that case, the conservator spent money at Victoria’s Secret, Joann Fabrics, and made multiple ATM withdrawals. All of these transactions were not typical for the veteran’s account. The intent behind FEPA is to help recognize and stop such fraud on the accounts of elderly customers.
Michigan Attorney General Dana Nessel said “[t]his Act is the result of prioritizing our vulnerable adults through consumer protection measures and education, and financial institutions will play a vital role in preventing exploitation.” The partnership between financial institutions, prosecutors, Adult Protective Services, and law enforcement will result in earlier detection and successful prosecution of those that prey on our vulnerable citizens.”
If you have further questions or concerns about how you can help protect elderly friends and family members from financial exploitation, contact Matt Fedor at 248.785.4734 or at mfedor@fosterswift.com. You can also visit our elder blog at mielderlawblog.com for previous content regarding financial abuse such as Financial Elder Abuse: Awareness and Prevention
Categories: Did you Know?, Financing, Senior Exploitation & Abuse
Survivor's Checklist:
Due to the shock of the death of a spouse or a loved one, the steps of what needs to be done first can be an overwhelming process for the survivor(s). To aid in the breakdown and to act as a tool amidst the emotional days ahead, estate planning Jonathan "Jay" David has assembled a "Survivor's Checklist" of some of the important things that need to be addressed when a spouse or loved one dies.
Resources and Support for Older Adults Living Alone: A Comprehensive Guide (2024):
Below is a comprehensive guide of resources for older adults living alone, empowering them to thrive independently and access essential services. This guide was created and provided with permission by the National Council on Aging (NCOA).
Resources and Support for Older Adults Living Alone: A Comprehensive Guide (2024) (ncoa.org)
Elder Organizer Tool:
Foster Swift has created a free ‘Elder Organizer’ digital notebook to provide seniors and their caretakers with a toolkit that helps organize doctors’ appointments, medications, and more that can be shared online. The tools below are also available on the Elder Law Resources page.
*For those trying to access these links by smartphone, it is best practice to copy/open the link in a separate tab and download the free Google Sheets app from Google Play or the Apple Store.
COVID-19 Checklist:
For adult children responsible for their elderly parents and other senior caretakers concerned about protecting loved ones as the COVID-19 pandemic continues, below is a free downloadable checklist of steps to follow to prepare for any possible COVID-19-related illnesses among the most-vulnerable.
Categories
- Senior Exploitation & Abuse
- Powers of Attorney
- Health Care Reform
- Medicaid Planning
- Elder Law
- Audits
- Hospitals
- Medicare/Medicaid
- Financing Long-term Care
- Estate Planning
- Employment
- Alerts and Updates
- Did you Know?
- Financing
- Compliance
- Dementia & Alzheimer's
- Safety
- Liability
- Long-Term Care
- Cybersecurity
- Medicare
- VA Aid & Attendance
- Legislative Updates
- Technology
- Personal Property Tax
- Digital Assets
- News
- Fraud & Abuse
- Retirement
- HIPAA
E-book Covers Estate Planning Essentials
Engaging in estate planning, while essential, is often emotional and generates many questions. How do I protect my spouse and my children if something happens to me? What happens if I become disabled before I pass on? Who will take care of my pet after I'm gone? How do I pass my business on to my children? These questions and more are addressed in Jonathan David’s recently updated e-book, “Estate Planning: You Have to Start in Order to Finish.”
Need Help Planning?
For more tools, visit our Elder Law Resource page for additional content. Click here to view/download the Foster Swift estate planning brochure to see what our experienced team of attorneys can do for you.