Financial exploitation is one of the fastest-growing threats facing older Texans. It rarely looks like a stranger breaking in. More often it is a trusted caregiver writing checks, an agent under a power of attorney treating a parent’s account as his own, a new “friend” who steers an older adult to change a will or deed, or a phone scammer who persuades someone to wire retirement savings. A Texas elder financial exploitation attorney helps families recognize what is happening, stop further losses, and use the civil, criminal, and protective tools Texas law provides.
Holmes Law is the practice of Michael Holmes, an attorney licensed in Texas who works with families remotely throughout the state. This page explains how Texas defines elder abuse and exploitation, who must report it, how banks and securities firms can intervene, what crimes apply, and what civil remedies are available. If someone is in immediate danger, call 911. To report suspected abuse, neglect, or exploitation, contact the Texas Abuse Hotline operated by the Department of Family and Protective Services. For planning to prevent abuse, see the broader Texas elder law page.
How Texas Defines Elder Abuse, Neglect, and Exploitation
Texas’s Adult Protective Services law is Chapter 48 of the Human Resources Code. It defines an “elderly person” as a person 65 years of age or older, and it also protects adults with disabilities. The statute covers three broad categories of mistreatment:
- Abuse, which includes intentional, knowing, or reckless infliction of physical or emotional injury, as well as sexual abuse.
- Neglect, including self-neglect, meaning the failure to provide oneself or another with goods or services necessary to avoid physical or emotional harm or pain.
- Exploitation, meaning the illegal or improper act or process of a caretaker, family member, or other person who has an ongoing relationship with the elderly person that involves using, or attempting to use, the resources of the elderly person for monetary or personal benefit, profit, or gain without informed consent.
Financial exploitation takes many forms: unauthorized withdrawals and transfers, misuse of a power of attorney, adding someone’s name to accounts or deeds, forged checks, pressure to change beneficiary designations, romance and grandparent scams, and “loans” that are never repaid.
Warning signs are often subtle. Families should pay attention to unpaid bills despite adequate income, sudden changes in banking habits, new joint account holders, missing jewelry or documents, a caregiver or new acquaintance who discourages visits or answers the phone for the older adult, unexpected changes to a will, trust, or deed, and an older adult who seems fearful or secretive about money. No single sign proves exploitation, but a pattern deserves a closer look, and early action usually preserves more assets.
Where to Report: APS, HHSC, and Law Enforcement
Texas splits investigative responsibility by setting. The Department of Family and Protective Services (DFPS), through Adult Protective Services, investigates abuse, neglect, and exploitation of older adults and adults with disabilities living in the community. Allegations involving residents of licensed facilities, such as nursing facilities and assisted living facilities, are investigated by the Texas Health and Human Services Commission’s long-term care regulatory staff. Both types of reports can be made through the Texas Abuse Hotline, by phone or online.
Where a crime has occurred, local police, the sheriff, and the district or county attorney have jurisdiction. APS may refer cases to law enforcement, and families can report directly as well. In cases with significant losses, a parallel civil strategy is often needed because a criminal conviction does not automatically return the money.
Mandatory Reporting in Texas
Texas has one of the broadest reporting requirements in the country. Under Section 48.051 of the Human Resources Code, any person who has cause to believe that an elderly person or a person with a disability is being abused, neglected, or exploited must report it immediately. This duty is not limited to professionals. Section 48.052 makes knowing failure to report a Class A misdemeanor. A person who reports in good faith is immune from civil or criminal liability.
Financial Institutions and Securities Firms
In 2017, the Texas Legislature added specific tools for financial professionals, now found in Chapter 281 of the Texas Finance Code. The statute protects “vulnerable adults,” a term that includes people 65 or older and adults with disabilities. Key provisions include:
- Employee reporting. Financial institution employees who suspect financial exploitation of a vulnerable adult account holder must notify the institution under its internal policies.
- Institutional reporting to DFPS. The financial institution must assess the suspicion and submit a report to DFPS no later than the earlier of the date the assessment is complete or the fifth business day after the employee’s notice.
- Third-party notice. The institution may notify a third party reasonably associated with the vulnerable adult, unless that person is suspected of the exploitation.
- Temporary holds. The institution may place a hold on a transaction it believes involves exploitation, and must place a hold if DFPS or law enforcement asks. The hold expires on the tenth business day unless extended at the request of an investigating agency (up to 30 additional business days) or by court order.
- Immunity. Institutions acting in good faith are protected from liability for reports and holds.
Parallel legislation adopted the same year gives securities dealers and investment advisers in Texas similar duties and authority to report suspected exploitation and to delay disbursements from a vulnerable adult’s account. Families sometimes see these holds from the other side, when an innocent transaction is delayed. Understanding the statute helps resolve a hold quickly.
Texas Crimes Against Elderly Individuals
The Texas Penal Code addresses elder abuse and exploitation through several statutes:
- Injury to an elderly individual. Section 22.04 criminalizes causing bodily injury, serious bodily injury, or serious mental deficiency or injury to an elderly individual, defined as a person 65 or older, including by omission when the defendant has assumed care, custody, or control.
- Exploitation of an elderly individual. Section 32.53 makes it a crime to intentionally, knowingly, or recklessly cause the exploitation of an elderly individual, meaning the illegal or improper use of the individual’s resources for personal gain.
- Financial abuse of an elderly individual. Section 32.55 addresses the wrongful taking, appropriation, obtaining, retention, or use of an elderly individual’s money or property, including through undue influence and by someone in a relationship of trust. Penalties scale with the amount involved, from a misdemeanor to a first-degree felony.
- Theft enhancement. Under Section 31.03, the punishment for theft is increased one category when the victim is an elderly individual.
- Misapplication of fiduciary property. Section 32.45 applies when a fiduciary, including an agent under a power of attorney, a trustee, or a guardian, misapplies property in violation of the fiduciary relationship.
Undue Influence and Contested Transfers
Undue influence is a civil concept that often overlaps with exploitation. The Texas Supreme Court’s decision in Rothermel v. Duncan, 369 S.W.2d 917 (Tex. 1963), identifies the elements: the existence and exertion of an influence, that the influence operated to subvert or overpower the person’s mind when the document was signed, and that the person would not have signed the document but for the influence. Circumstantial evidence matters, including the person’s weakened condition, isolation from family, secrecy, participation by the beneficiary in procuring the document, and an unnatural disposition.
Undue influence claims arise in will contests, challenges to deeds and beneficiary changes, and suits to set aside gifts. Timing is important. A will contest after probate generally must be brought within two years of the will being admitted, subject to limited exceptions, and other claims have their own deadlines.
Civil Remedies for Texas Families
Texas does not have a stand-alone elder abuse damages statute like some states. Instead, families use a combination of claims and procedures:
- Breach of fiduciary duty. An agent under a power of attorney is a fiduciary under Chapter 751 of the Estates Code. Trustees and guardians owe similar duties. Remedies can include actual damages, disgorgement of profits, a constructive trust, and, in appropriate cases, exemplary damages.
- Demand for an accounting. A principal, and in certain circumstances others, can require an agent to account for transactions. The 2017 amendments to the Durable Power of Attorney Act also allow specified persons, including certain family members and DFPS, to ask a court to construe a power of attorney or review an agent’s conduct.
- Texas Theft Liability Act. Chapter 134 of the Civil Practice and Remedies Code provides a civil action for theft, with the possibility of additional statutory damages and a mandatory award of attorney’s fees to the prevailing party, which cuts both ways.
- Conversion, fraud, and money had and received, as well as claims against financial institutions in limited circumstances.
- Suits to cancel deeds or set aside transfers based on lack of capacity, fraud, or undue influence.
- Guardianship. When an older adult lacks capacity and is being exploited, a temporary guardianship under the Estates Code can freeze accounts and remove a bad agent quickly, followed by a permanent guardianship if needed. A guardian can then pursue recovery.
Protective Orders and Emergency Relief
Several protective tools are available in Texas. Under Section 48.208 of the Human Resources Code, APS can seek emergency orders for protective services when an elderly person or person with a disability is suffering from abuse, neglect, or exploitation presenting a threat to life or physical safety and lacks capacity to consent. Where the abuser is a family or household member, a protective order under Title 4 of the Texas Family Code may be available. In civil litigation, a temporary restraining order and temporary injunction can freeze assets, and courts can appoint a temporary guardian with limited powers tailored to the emergency.
Limitations Periods in Texas
Texas civil claims have strict deadlines under Chapter 16 of the Civil Practice and Remedies Code. Claims for breach of fiduciary duty and fraud generally carry a four-year limitations period, while conversion and many theft-related claims carry a two-year period. The discovery rule and fraudulent concealment doctrine can delay the start of limitations in some cases, and incapacity of the victim can also affect timing. Because the rules are fact-specific, families should seek advice promptly once exploitation is suspected rather than waiting for an investigation to finish.
Prevention: Planning That Reduces Risk
The most effective protection against exploitation is usually a thoughtful plan made while the older adult has capacity:
- Choose agents carefully and consider co-agents or a requirement that the agent provide periodic accountings to another family member.
- Limit gifting powers in the power of attorney and specify who may receive gifts. See Texas incapacity and powers of attorney.
- Use a revocable trust with a professional or independent co-trustee for significant assets.
- Name a trusted contact person with banks and brokerage firms.
- Sign a Declaration of Guardian so a trusted person, not an exploiter, would be appointed if guardianship becomes necessary.
- Review account statements regularly and consider view-only access for a trusted family member.
How Holmes Law Helps
Michael Holmes helps Texas families evaluate suspected exploitation, gather records, demand accountings from agents and trustees, coordinate with APS and law enforcement, and pursue appropriate civil remedies or refer matters to litigation counsel when a courtroom case is required. Holmes Law also prepares preventive documents and helps restore a sound plan after exploitation has occurred, including revising wills and trusts and coordinating with Texas Medicaid planning when losses have affected eligibility. Holmes Law is a remote practice serving clients throughout Texas by video and phone.
Frequently Asked Questions
What age is considered “elderly” under Texas elder abuse law?
Both the APS statute, Chapter 48 of the Human Resources Code, and Penal Code Section 22.04 define an elderly person or individual as someone 65 or older. Adults with disabilities are also protected.
Am I required to report suspected elder abuse in Texas?
Yes. Any person who has cause to believe an elderly person or a person with a disability is being abused, neglected, or exploited must report it immediately. Failure to report is a Class A misdemeanor.
Can a Texas bank freeze my father’s account?
A financial institution may place a temporary hold on a transaction it believes involves exploitation of a vulnerable adult, and must do so at the request of DFPS or law enforcement. The hold generally expires after ten business days unless extended.
What can I do if my sibling is misusing Mom’s power of attorney?
Options include reporting to APS, demanding an accounting, asking a court to review the agent’s conduct, revoking the power if Mom still has capacity, and seeking a temporary guardianship if she does not. Losses may be recoverable through fiduciary duty and related claims.
How long do I have to sue for elder financial exploitation in Texas?
It depends on the claim. Breach of fiduciary duty and fraud generally carry four years; conversion and theft-related claims generally carry two. The discovery rule may extend these in some cases, so prompt advice is important.
Will reporting to APS get the money back?
Not by itself. APS investigates and provides protective services, and may refer cases for prosecution. Recovering assets usually requires a separate civil strategy.
Speak With a Texas Elder Financial Exploitation Attorney
If you suspect that a parent or loved one is being exploited, acting quickly can make the difference between recovering assets and losing them. Holmes Law can help you understand your options and take the next step. Contact Holmes Law to schedule a confidential remote consultation with Michael Holmes.