For a while, the decision looked promising. Amy was there to care for Shawn’s aunt, so Shawn could focus on his time-consuming job, with him and his brothers sharing the care costs.
That scenario shifted to the dark side a few weeks in. While leafing through his aunt’s updated financial documents, Shawn noticed her home deed had changed hands, with caregiver Amy as the new owner. Worse, his aunt’s physical health was deteriorating quickly, and her doctors told the family to prepare for the worst.
Shawn was alarmed and sought an eldercare attorney who could explain the family’s rights and risks related to the deed situation. What advice did he get? Here’s a snapshot.
Gauge your rights and your next move if Shawn’s scenario happens to you
Financial and legal specialists advise making these moves if, like Shawn, an elderly family member suffering from Alzheimer’s is taken advantage of by a caregiver.
Read it as a big red flag and take action quickly
Legal experts say a caregiver obtaining a deed transfer from a cognitively impaired older adult is a severe indicator of elder financial exploitation.
“Family members must immediately pull public land records to examine the deed type, execution date, notary details and declared consideration,” Lee Trett, co-founder of Money Helpdesk, an online financial advice service, told Moneywise.
Family members should also verify whether the senior had independent legal counsel separate from the caregiver and cross-reference the signing date against medical charts and cognitive evaluations. “It’s equally vital to review bank accounts and credit lines to see if broader financial control was seized simultaneously,” Trett noted.
Understand the concept of legal capacity and challenging the deed
By law, validly transferring real estate requires contractual capacity, meaning the senior must understand that they are permanently giving away their property without payment at the exact moment of execution. “A cognitive diagnosis like Alzheimer’s does not automatically void a signature due to potential lucid intervals, but moderate-to-severe impairment severely undermines legal validity,” Trett said. “To challenge the transfer, relatives must file a civil lawsuit, such as an Action to Quiet Title or Rescission of Deed.”
That challenge relies on retrospective medical evaluations, notary depositions, and proof that “the senior lacked true understanding of the transaction,” Trett added.
Save all pertinent medical, legal and financial records
Shawn and his brothers should also preserve medical records, communications, financial records and documents connected with the transaction. “Timing can be critical because evidence concerning the person’s cognitive condition and the circumstances surrounding the signing may become harder to obtain,” Steven C. Peck, founder of the Peck Law Group, told Moneywise.
Get legwork help from a financial advisor and attorney
Shawn and his family should also dig into the issue of whether persuading or pressuring a cognitively impaired person to transfer a $215,000 home constitutes undue influence, fraud or elder financial abuse. That process is best executed with the aid of a trusted financial and legal professional.
It’s also worth doing.
