Texas Penal Code §32.55: A New Law Protecting Elderly Individuals from Financial Abuse
The Texas Legislature has recently enacted a new penal statute, “Financial Abuse of Elderly Individual,” designed to protect elderly individuals from financial exploitation. This law, codified under Texas Penal Code §32.55, provides a clear legal framework for addressing and prosecuting instances of financial abuse against the elderly.
The statute defines “elderly individual” in accordance with Section 22.04 and outlines specific acts that constitute financial abuse. These include:
- Wrongful taking or appropriation of property: This encompasses a broad range of actions, such as theft, embezzlement, or misuse of funds.
- Exerting undue influence: This refers to situations where a person uses their position of authority or trust to coerce or manipulate an elderly individual into making financial decisions that are not in their best interest.
- Financial exploitation: This specifically targets individuals who have a relationship of confidence or trust with the elderly person. It includes actions like misappropriating funds, abusing guardianship powers, or failing to use the elderly person’s resources for their support.
Relationship of Confidence or Trust
The law defines a relationship of confidence or trust as existing between an elderly individual and a person who is:
- A relative by blood or marriage
- A joint tenant or tenant in common
- A legal or fiduciary representative
- A financial planner or investment professional
- A paid or unpaid caregiver
Implications for Professionals
This new law has significant implications for professionals who work with elderly individuals, including:
- Financial advisors: Advisors must exercise utmost care when handling the financial affairs of elderly clients, ensuring that their best interests are always protected.
- Caregivers: Caregivers should be aware of their responsibilities and avoid any actions that could be construed as financial abuse.
- Attorneys: Attorneys who represent elderly clients should be familiar with the law and be prepared to advise their clients on how to protect themselves from financial exploitation.
Conclusion
Texas Penal Code §32.55 is a crucial step in safeguarding the financial well-being of elderly individuals. By providing a legal framework and defining specific acts of financial abuse, Texas Penal Code §32.55 is designed to empower law enforcement and prosecutors to hold perpetrators accountable.
Disclaimer: The Estate Lawyers attorneys are licensed to practice law in California and do not intend to solicit legal business in jurisdictions where its lawyers are not licensed.
Additional Reading
Professionals who work with the elderly in Texas should be familiar with this law and take proactive measures to protect their clients from financial exploitation. To assist estate attorneys and planners in this mission across the country, The Estate Lawyers has prepared a paper titled Undue Influence: Protecting Clients and Their Estates by Amy Gostanian, Managing Partner. Complete this form and download the paper now!