Older adults frequently outsource many important tasks. They rely on others to clean their houses and maintain their yards. They may work with professionals to manage their finances as well.
Older adults investing their retirement savings often choose to partner with professional financial advisors. Those advisors should provide accurate information about different options and make choices that uphold their clients’ best interests in most cases.
Unfortunately, not all financial advisors have a legal duty to their clients, and some may abuse their position of trust. When that happens, legal action might be necessary.
Advisors may not have a fiduciary duty
Some financial professionals are fiduciaries. Their relationship with their clients creates a legal obligation to act in their best interests. Fiduciaries must prioritize their clients’ needs ahead of their own wishes or enrichment. The failure to do so can put their professional licensing and reputation at risk.
Many financial advisors are not fiduciaries. They may not have any licensing or verifiable credentials whatsoever. In some cases, they may embezzle from their clients or provide them with truly questionable guidance.
They may even engage in fraud as a means of enriching themselves at the expense of the clients who trust them. When families learn that an older adult has suffered major financial setbacks due to the unprofessional conduct of a financial advisor, they may have grounds to take legal action.
Holding financial professionals accountable for fraud may require thorough documentation and possibly a lawsuit. Concerned family members may need to review financial records and any contracts with a legal professional familiar with fraud cases involving older adults. They can then explore what forms of legal recourse may be available.
