Laws and Legal Documents: Preventing Financial Abuse of Vulnerable Adults in Florida

Florida is the number one retirement destination in the nation; unfortunately, that makes us a top scammer’s paradise. New legislation has put in place a series of protections preventing financial abuse of vulnerable adults, but there’s a lot more we can do on the individual level to protect those close to us. Let’s examine how laws and legal documents intersect to keep your parents safe and your assets intact.

[TABLE OF CONTENTS]

• State-Level Protection from Financial Exploitation
• Vital Documents for Protecting Parents and Assets from Scams
• The Elephant in the Room
• Planning Ahead Can Help Prevent Financial Abuse of Vulnerable Adults

State-Level Protection from Financial Exploitation

Florida Senate Bill 556¹ for the Protection of Specified Adults makes it more difficult for seniors to fall victim to financial exploitation. As of January 1, 2025, banks may hold certain transactions from the accounts of specified adults, meaning someone aged 65 or older or meeting the definition of a vulnerable adult under Florida law.

Financial institutions may only delay disbursements or transactions under the following conditions:

• The institution must reasonably believe that financial exploitation of the specified adult has already happened, is happening, has been attempted, or will be attempted in connection with the transaction.
• The institution must conduct an internal review of the circumstances causing the employee to believe the transaction was associated with financial exploitation.
• The institution must provide written notice of the reason for the transaction delay to all authorized parties on the account no later than three business days after the date when the hold was placed. An exception is allowed if the bank employee believes that authorized parties are involved in the potential exploitation.
• Disbursement or transaction delays expire in 15 business days. These may be extended up to an additional 30 business days. A court may shorten or extend the length of any delay.
• The financial institution must create and implement training programs to educate employees on the financial exploitation of specified adults, including enforced written procedures regarding how suspected financial exploitation is reported to supervisors.
• The institution must maintain written or electronic records of specified information for at least five years from the date of delayed disbursements or transactions.

If executed correctly, financial institutions would be immune from administrative or civil liabilities related to good faith delays or holds on transactions.

Vital Documents for Protecting Parents and Assets from Scams

Financial exploitation doesn’t have to involve a fraudulent check or stolen debit card. There are many ways unscrupulous people can gain access to a loved one’s money, assets, or property—from dating scams to fraudulent donation websites.

You want your parents to maintain as much freedom as possible, but they don’t want to admit they’re financially vulnerable. They think you’re paranoid when you warn them about making friends online or investing without an accountant. Fortunately, there are a few documents you can put in place to give you and your family peace of mind:

• Financial Power of Attorney (POA). This legal document allows you to make financial decisions on your parent’s behalf. Unlike in other states, a POA is effective immediately in Florida.
• Irrevocable Trusts. Both revocable and irrevocable trusts can be effective tools in preventing financial abuse of vulnerable adults. However, irrevocable trusts cannot be revoked by the creator, so your parent will have no legal ownership or access to them.
• Estate Plans. If your parents haven’t made an estate plan, I highly recommend they do so as soon as possible. One of the easiest ways to convince them is to make one for yourself at the same time.

The Elephant in the Room

Here’s the largest challenge with protecting vulnerable adults – what if you have to protect them from their own family? We’ve been contacted many times by children or siblings of a particular adult asking if we could prepare estate documents, powers of attorney, or similar documents based on the information the children or siblings provide to us. As you probably imagine, we’re not able to do that. 

The only person with whom we could directly work is the adult themselves. How surprising it’s been when we’ve asked people to leave the room!

It’s truly unfortunate to see how these situations sometimes play out. The best remedy is to start planning as early as possible. 

Planning Ahead Can Help Prevent Financial Abuse of Vulnerable Adults

While new laws may help prevent elder abuse, the best way of protecting parents’ assets from scams will depend on your unique circumstances. We’re always here to help. Email us at [email protected] or schedule an intro call today to see how we can help you be a Hero to Your Family.

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1.  Codified at Section 415.10341, Florida Statutes ↩︎