Estate Planners: Know These Five Red Flags

Act quickly if you suspect undue influence. 

Someone is more vulnerable when they are suffering from poor physical or mental health, easily confused, isolated, and/or dependent on the care of others. If you suspect an elderly or compromised person may be the victim of undue influence, check your suspicions against red flags, including these five.

1. Over-involvement. Is someone known or someone new exerting significant sway over an individual, applying pressure to make decisions, or pushing the testator to sign documents they don’t understand? In other words, is there a control freak in the testator’s orbit? There is a line between being vigilant for the good of an elderly person and manipulating them for personal gain.
2. Sudden changes. Have there been unexpected alterations to their will, estate plan, or other legal documents?
3. Unusual financial activity. Are you seeing uncharacteristic spending patterns or financial transactions? Any unusual or unexplained gifts or transfers of assets? Is the client being denied access to their financial information?
4. Behavioral shifts. Are you witnessing unusual or marked changes in behavior or habits, such as reluctance to discuss financial matters, isolation from friends and family, or from normally trusted advisors?
5. Changes in living situation. Has the client made sudden changes in their living arrangements, such as where they live and with whom?
6. Bonus flags! When an individual claims undue influence, pay attention to the alleged influencer’s conduct. When the will or trust was made, were they present and did they suggest any changes? Did they select the drafting attorney or instruct the attorney about the elements of the document? Did they pick the signing witnesses? This kind of involvement may signal someone is over-involved in the estate, possibly for personal gain.

The longer undue influence endures, the harder it is to tackle in real time or later prove in court.

Additional Reading

Professionals who work with the elderly should take proactive measures to protect their clients from financial exploitation. To assist estate attorneys and planners in this mission across the country, we prepared a paper titled Undue Influence: Protecting Clients and Their Estates by Amy Gostanian, Managing Partner. Complete this form and download the paper now!